IDEAS home Printed from https://ideas.repec.org/a/fau/aucocz/au2015_135.html
   My bibliography  Save this article

Differential Game Approach for International Environmental Agreements with Social Externalities

Author

Listed:
  • Lina Mallozzi

    () (University of Naples Federico II, Faculty of Economics, Naples, Italy)

  • Stefano Patri

    () (University of Rome I, Rome, Italy)

  • Armando Sacco

    () (University of Rome I, Rome, Italy)

Abstract

In this work we study an N-player differential game, in which positive social externalities affect the payoffs of the players when they make an agreement. We divide the N players in two homogeneous groups, N1 developed countries and N2 developing countries. For the latter, we consider a damage-cost function that evolves in time. We imagine the externalities as the possibility that bilateral or multilateral agreements of various nature are by-products of an International Environmental Agreement (IEA). After the determination of emissions solutions, we use the externalities to investigate whether it is possible to have a self-enforcing agreement on pollution emissions in the short run.

Suggested Citation

  • Lina Mallozzi & Stefano Patri & Armando Sacco, 2015. "Differential Game Approach for International Environmental Agreements with Social Externalities," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 9(3), pages 135-154, December.
  • Handle: RePEc:fau:aucocz:au2015_135
    as

    Download full text from publisher

    File URL: http://auco.cuni.cz/mag/article/download/id/169/type/attachment
    Download Restriction: no

    References listed on IDEAS

    as
    1. Effrosyni Diamantoudi & Eftichios S. Sartzetakis, 2006. "Stable International Environmental Agreements: An Analytical Approach," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(2), pages 247-263, May.
    2. Michael Finus, 2001. "Game Theory and International Environmental Cooperation," Books, Edward Elgar Publishing, number 2118.
    3. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-894, Supplemen.
    4. Pavlova, Yulia & de Zeeuw, Aart, 2013. "Asymmetries in international environmental agreements," Environment and Development Economics, Cambridge University Press, vol. 18(01), pages 51-68, February.
    5. Michael Hoel & Kerstin Schneider, 1997. "Incentives to participate in an international environmental agreement," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 9(2), pages 153-170, March.
    6. Masoudi, Nahid & Zaccour, Georges, 2013. "A differential game of international pollution control with evolving environmental costs," Environment and Development Economics, Cambridge University Press, vol. 18(06), pages 680-700, December.
    7. Rubio, Santiago J. & Ulph, Alistair, 2007. "An infinite-horizon model of dynamic membership of international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 54(3), pages 296-310, November.
    8. Claude d'Aspremont & Alexis Jacquemin & Jean Jaskold Gabszewicz & John A. Weymark, 1983. "On the Stability of Collusive Price Leadership," Canadian Journal of Economics, Canadian Economics Association, vol. 16(1), pages 17-25, February.
    9. Subhadip Chakrabarti & Robert Gilles & Emiliya Lazarova, 2011. "Strategic behavior under partial cooperation," Theory and Decision, Springer, vol. 71(2), pages 175-193, August.
    10. Marie-Laure Cabon-Dhersin & Shyama V. Ramani, 2006. "Can Social Externalities Solve the Small Coalitions Puzzle in International Environmental Agreements?," Economics Bulletin, AccessEcon, vol. 17(4), pages 1-8.
    11. Santiago Rubio & Begoña Casino, 2005. "Self-enforcing international environmental agreements with a stock pollutant," Spanish Economic Review, Springer;Spanish Economic Association, vol. 7(2), pages 89-109, June.
    12. Fuentes-Albero, Cristina & Rubio, Santiago J., 2010. "Can international environmental cooperation be bought?," European Journal of Operational Research, Elsevier, vol. 202(1), pages 255-264, April.
    13. repec:ebl:ecbull:v:17:y:2006:i:4:p:1-8 is not listed on IDEAS
    14. Carraro, Carlo & Siniscalco, Domenico, 1993. "Strategies for the international protection of the environment," Journal of Public Economics, Elsevier, vol. 52(3), pages 309-328, October.
    15. Lina Mallozzi & Stef Tijs, 2009. "Coordinating choice in partial cooperative equilibrium," Economics Bulletin, AccessEcon, vol. 29(2), pages 1459-1465.
    16. Nordhaus, William D., 1993. "Rolling the 'DICE': an optimal transition path for controlling greenhouse gases," Resource and Energy Economics, Elsevier, vol. 15(1), pages 27-50, March.
    17. Michèle Breton & Lucia Sbragia & Georges Zaccour, 2010. "A Dynamic Model for International Environmental Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(1), pages 25-48, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Differential game; self-enforcing agreement; social externality; asymmetric players;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fau:aucocz:au2015_135. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lenka Stastna). General contact details of provider: http://edirc.repec.org/data/icunicz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.