A Proposal to Reform the Kyoto Protocol: the Role of Escape Clauses and Foresight
A reform to the Kyoto Protocol that allows signatories to pay a fine instead of meeting the target level of abatement would achieve three goals. First, it would defuse one U.S. objection to the agreement: the concern that the cost of achieving the target might turn out to be extremely high. Second, unlike other cost-reducing measures (such as trade in pollution permits) it would increase the equilibrium number of signatories in a non-cooperative participation game. Third, it would make it easier to force signatories to comply with their obligations. We study the participation game under an escape clause using both a Nash Equilibrium and the concept of a stable set when nations are â€œfarsightedâ€ . We compare our results to a prominent model of International Environmental Agreements (IEAs) which finds that the equilibrium size of an IEA tends to be small when the benefits of cooperation are large. We show that with an escape clause and a properly chosen level of fine, a large IEA can be formed even when the benefits of cooperation are large.
|Date of creation:||23 Feb 2007|
|Date of revision:|
|Contact details of provider:|| Postal: 207 Giannini Hall #3310, Berkeley, CA 94720-3310|
Phone: (510) 642-3345
Fax: (510) 643-8911
Web page: http://www.escholarship.org/repec/are_ucb/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Carraro, Carlo & Siniscalco, Domenico, 1991. "Strategies for the International Protection of the Environment," CEPR Discussion Papers 568, C.E.P.R. Discussion Papers.
- Michael Hoel & Larry Karp, 1999.
"Taxes and Quotas for a Stock Pollutant with Multiplicative Uncertainty,"
1999.15, Fondazione Eni Enrico Mattei.
- Hoel, Michael & Karp, Larry, 2001. "Taxes and quotas for a stock pollutant with multiplicative uncertainty," Journal of Public Economics, Elsevier, vol. 82(1), pages 91-114, October.
- Hoel, Michael & Karp, Larry, 2000. "Taxes and Quotas for a Stock Pollutant with Multiplicative Uncertainty," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt9v86p5s7, Department of Agricultural & Resource Economics, UC Berkeley.
- DIAMANTOUDI, Effrosyni & SARTZETAKIS, Eftichios, 2002.
"International environmental agreements - The role of foresight,"
CORE Discussion Papers
2002061, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Effrosyni Diamantoudi & Eftichios S. Sartzetakis, . "International Environmental Agreements -The Role of Foresight," Economics Working Papers 2002-10, Department of Economics and Business Economics, Aarhus University.
- Effrosyni Diamantoudi & Eftichios S. Sartzetakis, 2015. "International Environmental Agreements-The Role of Foresight," Discussion Paper Series 2015_09, Department of Economics, University of Macedonia, revised Dec 2015.
- Johan Eyckmans, 2001. "On the farsighted stability of the Kyoto Protocol," Energy, Transport and Environment Working Papers Series ete0103, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
- Debraj Ray & Rajiv Vohra, 2001. "Coalitional Power and Public Goods," Journal of Political Economy, University of Chicago Press, vol. 109(6), pages 1355-1384, December.
- Licun Xue, 1998. "Coalitional stability under perfect foresight," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 11(3), pages 603-627.
- Stiglitz Joseph, 2006. "A New Agenda for Global Warming," The Economists' Voice, De Gruyter, vol. 3(7), pages 1-4, July.
- Amitrajeet A. Batabyal, 2011. "The Economics of Hate," Review of Social Economy, Taylor & Francis Journals, vol. 69(4), pages 534-537, December.
- Mariotti, Marco, 1997. "A Model of Agreements in Strategic Form Games," Journal of Economic Theory, Elsevier, vol. 74(1), pages 196-217, May.
- de Zeeuw, Aart, 2008.
"Dynamic effects on the stability of international environmental agreements,"
Journal of Environmental Economics and Management,
Elsevier, vol. 55(2), pages 163-174, March.
- Aart de Zeeuw, 2005. "Dynamic Effects on the Stability of International Environmental Agreements," Working Papers 2005.41, Fondazione Eni Enrico Mattei.
- Dixit, Avinash & Olson, Mancur, 2000. "Does voluntary participation undermine the Coase Theorem?," Journal of Public Economics, Elsevier, vol. 76(3), pages 309-335, June.
When requesting a correction, please mention this item's handle: RePEc:cdl:agrebk:qt5b10v2jr. 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: (Lisa Schiff)
If references are entirely missing, you can add them using this form.