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Reciprocal climate negotiators

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  • Nyborg, Karine

Abstract

Do reciprocal preferences matter for participation in international environmental agreements? Combining the two canonical models of Barrett (2003) and Rabin (1993), I find that 1) the empty coalition is always stable; 2) the grand coalition is stable if reciprocity preferences are sufficiently strong; 3) if a minority of countries are not reciprocal, a majority coalition can still be stable, if reciprocity is sufficiently strong and widespread; and 4) there is also a stable minority coalition, if costs are moderate and the number of countries is not too small. The latter coalition is weakly larger than the maximum stable coalition with standard preferences, but barely improves on welfare, and is characterized by negative sentiments. The analysis illustrates that although models of reciprocity tend to be complex, the context of a specific applied game may reduce this complexity.

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  • Nyborg, Karine, 2018. "Reciprocal climate negotiators," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 707-725.
  • Handle: RePEc:eee:jeeman:v:92:y:2018:i:c:p:707-725
    DOI: 10.1016/j.jeem.2017.08.008
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    Cited by:

    1. Doruk Iris & Alessandro Tavoni, 2016. "Tipping Points and Loss Aversion in International Environmental Agreements," Working Papers 1603, Research Institute for Market Economy, Sogang University.
    2. Stefano Carattini & Simon Levin & Alessandro Tavoni, 2019. "Cooperation in the Climate Commons," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(2), pages 227-247.
    3. Dufwenberg, Martin & Kirchsteiger, Georg, 2019. "Modelling kindness," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 228-234.
    4. Pierpaolo Battigalli & Martin Dufwenberg, 2020. "Belief-Dependent Motivations and Psychological Game Theory," CESifo Working Paper Series 8285, CESifo.
    5. Jang, Dooseok & Patel, Amrish & Dufwenberg, Martin, 2018. "Agreements with reciprocity: Co-financing and MOUs," Games and Economic Behavior, Elsevier, vol. 111(C), pages 85-99.
    6. David M. McEvoy & Tobias Haller & Esther Blanco, 2019. "The Role of Non-Binding Pledges in Social Dilemmas with Mitigation and Adaptation," Working Papers 2019-04, Faculty of Economics and Statistics, University of Innsbruck.

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    More about this item

    Keywords

    International Environmental Agreements; Reciprocity; Coalitions;
    All these keywords.

    JEL classification:

    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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