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International Environmental Cooperation under Fairness and Reciprocity


  • Hadjiyiannis Costas

    () (University of Cyprus)

  • İriş Doruk

    () (Universidade Nova de Lisboa)

  • Tabakis Chrysostomos

    () (Universidade Nova de Lisboa)


This paper explores the implications of fairness and reciprocity for self-enforcing international environmental agreements on pollution abatement. Reciprocal countries reward fair behavior (positive reciprocity), but retaliate against countries behaving unfairly (negative reciprocity). We demonstrate that reciprocal countries that have moderate expectations from each other with respect to their national abatement strategies can support a greater degree of environmental cooperation than self-interested ones. However, when only very high abatement standards are deemed fair, then reciprocity could have a detrimental effect on international environmental cooperation. Our model therefore provides a novel perspective on the role of expectations in environmental negotiations.

Suggested Citation

  • Hadjiyiannis Costas & İriş Doruk & Tabakis Chrysostomos, 2012. "International Environmental Cooperation under Fairness and Reciprocity," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-30, August.
  • Handle: RePEc:bpj:bejeap:v:12:y:2012:i:1:n:33

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    References listed on IDEAS

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    Cited by:

    1. Nyborg, Karine, 2015. "Reciprocal Climate Negotiators," IZA Discussion Papers 8866, Institute for the Study of Labor (IZA).
    2. Doruk Iris & Alessandro Tavoni, 2016. "Tipping Points and Loss Aversion in International Environmental Agreements," Working Papers 1603, Research Institute for Market Economy, Sogang University.
    3. Brian Chi-ang Lin & Siqi Zheng & Doruk İriş, 2016. "Economic Targets And Loss-Aversion In International Environmental Cooperation," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 624-648, July.
    4. Dooseok Jang & Amrish Patel & Martin Dufwenberg, 2016. "Co-financing agreements and reciprocity: When 'no deal' is a good deal," University of East Anglia School of Economics Working Paper Series 2016-12, School of Economics, University of East Anglia, Norwich, UK..
    5. Nyborg, Karine, 2014. "Reciprocal Climate Negotiators: Balancing Anger against Even More Anger," Memorandum 17/2014, Oslo University, Department of Economics.

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