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International environmental agreements: coordinated action under foresight

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  • Effrosyni Diamantoudi

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  • Eftichios Sartzetakis

Abstract

We examine the formation of international environmental agreements (IEAs). We extend the existing literature by endogenizing the reaction of the IEA’s members to a deviation by a group of members. We assume that when a group of countries contemplates exiting or joining an agreement, it takes into account the reactions of other countries ignited by its own actions. We identify conditions under which the solution always exists and fully characterize the coalitionally farsighted stable IEAs. The new farsighted IEAs can be much larger than those some of the previous models supported and are always Pareto efficient. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Effrosyni Diamantoudi & Eftichios Sartzetakis, 2015. "International environmental agreements: coordinated action under foresight," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 59(3), pages 527-546, August.
  • Handle: RePEc:spr:joecth:v:59:y:2015:i:3:p:527-546
    DOI: 10.1007/s00199-014-0837-8
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    References listed on IDEAS

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    Cited by:

    1. Benchekroun, Hassan & Martín-Herrán, Guiomar, 2016. "The impact of foresight in a transboundary pollution game," European Journal of Operational Research, Elsevier, vol. 251(1), pages 300-309.
    2. Erik Ansink & Hans-Peter Weikard & Cees Withagen, 2015. "International Environmental Agreements with Support," Tinbergen Institute Discussion Papers 15-015/VIII, Tinbergen Institute, revised 07 Jul 2017.
    3. repec:now:jnlsbe:102.00000065t is not listed on IDEAS
    4. Billette de Villemeur, Etienne & Leroux, Justin, 2016. "A liability approach to climate policy: A thought experiment," MPRA Paper 75497, University Library of Munich, Germany.
    5. Van Long, Ngo, 2016. "The Impacts of Other-Regarding Preferences and Ethical Choice on Environmental Outcomes: A Review of the Literature," Strategic Behavior and the Environment, now publishers, vol. 6(1-2), pages 1-35, December.

    More about this item

    Keywords

    Environmental agreements; Foresight; Stable set; D6; Q5; C7;

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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