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Financial transfers to ensure cooperative international optimality in stock pollutant abatement

Author

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  • GERMAIN , Marc

    (Center for Operations Research and Econometrics (CORE), Université catholique de Louvain (UCL), Louvain la Neuve, Belgium)

  • TOINT , Philippe

    (Département de Mathématique, Facultés universitaires Notre-Dame de la Paix,)

  • TULKENS, Henry

    () (Center for Operations Research and Econometrics (CORE), Université catholique de Louvain (UCL), Louvain la Neuve, Belgium)

Abstract

It is well known that the transnational character of many environmental problems requires cooperation amongst the countries involved, if a social optimum is at all to be achieved. Most of the numerous contributions dealing with the problems raised by the cooperation issue bear only on pollutants that do not accumulate: they are thus only relevant in a static, or a-temporal, context. On the other hand, many contributions which deal with the dynamic dimension of the problem when the pollutant accumulates leave aside the issue of the voluntary implementation of the international optimum. The aim of the present contribution is to overtake the two above limita- tions. Using both cooperative and differential game theories, we design a scheme of financial transfers between countries such that aggregate abatement costs are covered in a way that makes cooperation both individually rational and strategically stable.

Suggested Citation

  • GERMAIN , Marc & TOINT , Philippe & TULKENS, Henry, 1997. "Financial transfers to ensure cooperative international optimality in stock pollutant abatement," CORE Discussion Papers 1997001, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:1997001
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    File URL: https://uclouvain.be/en/research-institutes/immaq/core/dp-1997.html
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    Cited by:

    1. Carlo Carraro & Johan Eyckmans & Michael Finus, 2006. "Optimal transfers and participation decisions in international environmental agreements," The Review of International Organizations, Springer, vol. 1(4), pages 379-396, December.
    2. Germain, Marc & Tulkens, Henry & Magnus, Alphonse, 2010. "Dynamic core-theoretic cooperation in a two-dimensional international environmental model," Mathematical Social Sciences, Elsevier, vol. 59(2), pages 208-226, March.
    3. Escapa García, Marta & Ansuategui Cobo, José Alberto & Pérez, Azucena, 2003. "International and Intergenerational Dimensions of Climate Change: North-South Cooperation in an Overlapping Generations Framework," IKERLANAK 2003-06, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
    4. repec:ebl:ecbull:v:17:y:2004:i:7:p:1-11 is not listed on IDEAS
    5. EYCKMANS, Johan & FINUS, Michael, 2003. "Coalition formation in a global warming game : how the design of protocols affects the success of environmental treaty-making," CORE Discussion Papers 2003088, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. GERMAIN, Marc & TOINT, Philippe & TULKENS, Henry & DE ZEEUW, Aart, 1998. "Transfers to sustain core-theoretic cooperation in international stock pollutant control," CORE Discussion Papers 1998032, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Johan Eyckmans & Henry Tulkens, 1999. "Simulating with RICE Coalitionally Stable Burden Sharing Agreements for the Climate Change Problem," CESifo Working Paper Series 228, CESifo Group Munich.
    8. Eyckmans, Johan & Tulkens, Henry, 2003. "Simulating coalitionally stable burden sharing agreements for the climate change problem," Resource and Energy Economics, Elsevier, vol. 25(4), pages 299-327, October.
    9. Johan Eyckmans & Michael Finus, 2004. "An Empirical Assessment of Measures to Enhance the Success of Global Climate Treaties," Energy, Transport and Environment Working Papers Series ete0406, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
    10. Johan Eyckmans & Michael Finus, 2007. "Measures to enhance the success of global climate treaties," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 7(1), pages 73-97, March.
    11. Porchiung Chou & Cheickna Sylla, 2008. "The formation of an international environmental agreement as a two-stage exclusive cartel formation game with transferable utilities," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 8(4), pages 317-341, December.
    12. Alberto Ansuategi & Marta Escapa, 2004. "Is international cooperation on climate change good for the environment?," Economics Bulletin, AccessEcon, vol. 17(7), pages 1-11.
    13. Ansuategui Cobo, José Alberto & Escapa García, Marta & Pérez, Azucena, 2003. "International and Intergenerational Dimensions of Climate Change: North-South Cooperation in an Overlapping Generations Framework," IKERLANAK 2003-06, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.

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