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Cooperation in international environmental negotiations due to a preference for equity

  • Lange, Andreas
  • Vogt, Carsten

This paper demonstrates that cooperation in international environmental negotiations can be explained by preferences for equity. Within a N-country prisoner?s dilemma in which agents can either cooperate or defect, in addition to the standard non-cooperative equilibrium, cooperation of a large fraction or even of all countries can establish a Nash equilibrium. In an emission game, however, where countries can choose their abatement level continuously, equity preferences cannot improve upon the standard inefficient Nash-equilibrium. Finally, in a two stage game on coalition formation, the presence of equity-interested countries increases the coalition size and leads to efficiency gains. Here, even a stable agreement with full cooperation can be reached.

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Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 87 (2003)
Issue (Month): 9-10 (September)
Pages: 2049-2067

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Handle: RePEc:eee:pubeco:v:87:y:2003:i:9-10:p:2049-2067
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  1. Michael Hoel, 1992. "International environment conventions: The case of uniform reductions of emissions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(2), pages 141-159, March.
  2. Murdoch, James C. & Sandler, Todd, 1997. "The voluntary provision of a pure public good: The case of reduced CFC emissions and the Montreal Protocol," Journal of Public Economics, Elsevier, vol. 63(3), pages 331-349, February.
  3. CHANDER, Parkash & TULKENS, Henry, 1995. "The Core of an Economy with Multilateral Environmental Externalities," CORE Discussion Papers 1995050, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-94, Supplemen.
  5. Carraro, Carlo & Siniscalco, Domenico, 1991. "Strategies for the International Protection of the Environment," CEPR Discussion Papers 568, C.E.P.R. Discussion Papers.
  6. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
  7. Gary E. Bolton & Axel Ockenfels, . "Self-centered fairness in games with more than tow players," Papers on Strategic Interaction 2002-42, Max Planck Institute of Economics, Strategic Interaction Group.
  8. Toman, Michael & Shogren, Jason, 2000. "Climate Change Policy," Discussion Papers dp-00-22, Resources For the Future.
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