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Dynamics and Limited Cooperation In International Environmental Agreements

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  • Karp, Larry
  • Sacheti, Sandeep

Abstract

The amount of cooperation needed to improve the welfare of signatories of International Environmental Agreements (lEAs), in the presence of market imperfections, depends on the characteristics of pollution. In a dynamic model, the conventional wisdom on the effect of free-riding needs to be modified for certain types of pollution problems. For local pollution problems, a sufficient level of free-riding actually promotes signatories' welfare. For global pollution problems, the conventional wisdom is correct insofar as free-riding makes it more difficult to form a successful lEA. However, for some global pollution problems, free-tiding may disappear. A static model may overstate or understate the difficulty of forming a successful lEA. The effect of an lEA is sensitive to differences between the duration of the lEA and agents' planning horizon.

Suggested Citation

  • Karp, Larry & Sacheti, Sandeep, 1997. "Dynamics and Limited Cooperation In International Environmental Agreements," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt4sb827mk, Department of Agricultural & Resource Economics, UC Berkeley.
    • Handle: RePEc:cdl:agrebk:qt4sb827mk
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    References listed on IDEAS

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    Cited by:

    1. 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.

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