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Public Good Provision and Ancillary Benefits: The Case of Climate Agreements

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  • Michael Finus

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  • Dirk Rübbelke

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Abstract

Several studies found ancillary benefits of the provision of public goods to be of considerable size. If these additional private benefits were noticed, they would imply not only higher cooperative but also non-cooperative provision levels. However, beyond these largely undisputed important quantitative effects, there would be qualitative and strategic implications associated with ancillary benefits: public policy would no longer be a pure but an impure public good. In this paper, we investigate these implications in a setting of non-cooperative coalition formation in the context of climate change. In particular, we address the following question. Would ancillary benefits if they were taken in consideration increase participation in international climate agreements and raise the success of these treaties in welfare terms? Copyright Springer Science+Business Media B.V. 2013

Suggested Citation

  • Michael Finus & Dirk Rübbelke, 2013. "Public Good Provision and Ancillary Benefits: The Case of Climate Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(2), pages 211-226, October.
  • Handle: RePEc:kap:enreec:v:56:y:2013:i:2:p:211-226
    DOI: 10.1007/s10640-012-9570-6
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    References listed on IDEAS

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    Cited by:

    1. Tom Dedeurwaerdere & Paolo Melindi-Ghidi & Willem Sas, 2015. "Voluntary Provision of Public Knowledge Goods: Group-Based Social Preferences and Coalition Formation," Working Papers halshs-01224007, HAL.
    2. By Thomas Eichner & Rüdiger Pethig, 2015. "Self-enforcing international environmental agreements and trade: taxes versus caps," Oxford Economic Papers, Oxford University Press, vol. 67(4), pages 897-917.
    3. Takashima, Nobuyuki, 2017. "International environmental agreements with ancillary benefits: Repeated games analysis," Economic Modelling, Elsevier, vol. 61(C), pages 312-320.
    4. Heyen, Daniel, 2016. "Strategic conflicts on the horizon: R&D incentives for environmental technologies," LSE Research Online Documents on Economics 68104, London School of Economics and Political Science, LSE Library.
    5. Heyen, Daniel, 2015. "Strategic Conflicts on the Horizon: R&D Incentives for Environmental Technologies," Working Papers 0584, University of Heidelberg, Department of Economics.
    6. Ambec, Stefan & Coria, Jessica, 2015. "Strategic environmental regulation of multiple pollutants," Working Papers in Economics 626, University of Gothenburg, Department of Economics.
    7. repec:spr:ieaple:v:17:y:2017:i:5:d:10.1007_s10784-017-9368-7 is not listed on IDEAS
    8. Eichner, Thomas & Pethig, Rüdiger, 2014. "Self-enforcing environmental agreements and capital mobility," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 120-132.
    9. Ian Bateman & Hassan Benchekroun & Christian Vossler, 2015. "EAERE Award for the Best Paper Published in Environmental and Resource Economics During 2013," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(3), pages 325-326, March.
    10. repec:eee:jeeman:v:87:y:2018:i:c:p:114-134 is not listed on IDEAS
    11. Hsiao-Chi Chen & Shi-Miin Liu, 2017. "An Evolutionary Approach to International Environmental Agreements with Full Participation," RIEEM Discussion Paper Series 1702, Research Institute for Environmental Economics and Management, Waseda University.
    12. Ambec, Stefan & Coria, Jessica, 2018. "Policy spillovers in the regulation of multiple pollutants," Journal of Environmental Economics and Management, Elsevier, vol. 87(C), pages 114-134.
    13. Basak Bayramoglu & Michael Finus & Jean-Francois Jaques, 2016. "Climate Agreements in a Mitigation-Adaptation Game," Department of Economics Working Papers 51/16, University of Bath, Department of Economics.
    14. Thomas Eichner & Rüdiger Pethig, 2015. "Is trade liberalization conducive to the formation of climate coalitions?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(6), pages 932-955, December.
    15. Lin, Yu-Hsuan, 2018. "Reciprocity Reciprocity in Climate Coalition Formationin Climate Coalition Formation," MPRA Paper 86494, University Library of Munich, Germany.
    16. Jon Hovi & Hugh Ward & Frank Grundig, 2015. "Hope or Despair? Formal Models of Climate Cooperation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 665-688, December.
    17. Lin, Yu-Hsuan, 2018. "How does Altruism Enlarge a Climate Coalition?," MPRA Paper 86484, University Library of Munich, Germany.
    18. Daniel Heyen, 2016. "Strategic Conflicts On The Horizon: R&D Incentives For Environmental Technologies," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 7(04), pages 1-27, November.
    19. Wolfgang Buchholz & Todd Sandler, 2016. "Olson’s exploitation hypothesis in a public good economy: a reconsideration," Public Choice, Springer, vol. 168(1), pages 103-114, July.
    20. Bigerna, Simona & Bollino, Carlo Andrea & Micheli, Silvia, 2016. "Renewable energy scenarios for costs reductions in the European Union," Renewable Energy, Elsevier, vol. 96(PA), pages 80-90.
    21. Daniel Heyen & Joshua Horton & Juan Moreno-Cruz, 2018. "Strategic Implications of Counter-Geoengineering: Clash or Cooperation?," CESifo Working Paper Series 7180, CESifo Group Munich.

    More about this item

    Keywords

    Ancillary benefits; Impure public goods; Coalition formation; Game theory; Climate policy; C72; H87; Q54;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • 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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