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Actions Prior to Entering an International Environmental Agreement

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  • Urs Steiner Brandt

Abstract

This paper demonstrates how expectations about the design of regimes influence countries' actions before negotiating for agreements on international environmental problems. When a country is privately informed about own reduction costs, the preagreement emission level serves as a device to signal costs. The first main result is that private information leads to an environmentally less effective situation. Second, the distortions depend on the type of regime. In particular, for high probability of high costs, distortions are lower in a uniform regime than in a differentiated regime. Hence, comparison of regimes is nontrivial when private information is added.

Suggested Citation

  • Urs Steiner Brandt, 2002. "Actions Prior to Entering an International Environmental Agreement," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(4), pages 695-695, December.
  • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200212)158:4_695:apteai_2.0.tx_2-7
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    References listed on IDEAS

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    1. Kyle Bagwell & Garey Ramey, 1988. "Advertising and Limit Pricing," RAND Journal of Economics, The RAND Corporation, vol. 19(1), pages 59-71, Spring.
    2. Michael Finus, 2001. "Game Theory and International Environmental Cooperation," Books, Edward Elgar Publishing, number 2118.
    3. Urs Steiner Brandt, 2002. "Actions Prior to Entering an International Environmental Agreement," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(4), pages 695-695, December.
    4. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, January.
    5. 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.
    6. Barrett, Scott, 1997. "The strategy of trade sanctions in international environmental agreements," Resource and Energy Economics, Elsevier, vol. 19(4), pages 345-361, November.
    7. Johan Eyckmans, 1999. "Strategy Proof Uniform Effort Sharing Schemes For Transfrontier Pollution Problems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 14(2), pages 165-189, September.
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    Cited by:

    1. Hans-Peter Weikard & Leo Wangler & Andreas Freytag, 2015. "Minimum Participation Rules with Heterogeneous Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 711-727, December.
    2. Brandt, Urs Steiner, 2004. "Unilateral actions, the case of international environmental problems," Resource and Energy Economics, Elsevier, vol. 26(4), pages 373-391, December.
    3. Urs Steiner Brandt, 2002. "Actions Prior to Entering an International Environmental Agreement," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(4), pages 695-695, December.

    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • F00 - International Economics - - General - - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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