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Transfers to sustain core-theoretic cooperation in international stock pollutant control

Author

Listed:
  • 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, Namur)

  • TULKENS, Henry

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

  • DE ZEEUW, Aart

    () (Département of Economics and CentER, Tilburg University)

Abstract

International environmental agreements aiming at correcting negative externalities generated by transboundary pollution are difficult to achieve for many reasons. Important obstacles arise from asymmetry in costs and benefits, and instability may occur due to the fact that coalitions of countries may attempt to do better for themselves outside of any proposed agreement. In a static context, it has already been shown that it is possible to achieve stability in the sense of the core of a cooperative game, by means of appropriately defined transfers between the countries involved. However, the transboundary pollution problems that are most important are caused by accumulated pollutants so that a dynamic analysis is required. This paper provides a transfer scheme that yields a core property in a dynamic context. The possibility of computing such transfers numerically is discussed.

Suggested Citation

  • 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).
  • Handle: RePEc:cor:louvco:1998032
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    File URL: https://uclouvain.be/en/research-institutes/immaq/core/dp-1998.html
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    References listed on IDEAS

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    1. Karl-Göran Mäler & Aart De Zeeuw, 1998. "The Acid Rain Differential Game," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(2), pages 167-184, September.
    2. Parkash Chander & Henry Tulkens, 1995. "A core-theoretic solution for the design of cooperative agreements on transfrontier pollution," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 2(2), pages 279-293, August.
    3. 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.
    4. Henry Tulkens & Parkash Chander, 1997. "The Core of an Economy with Multilateral Environmental Externalities," International Journal of Game Theory, Springer;Game Theory Society, vol. 26(3), pages 379-401.
    5. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-894, Supplemen.
    6. Houba, H. & De Zeeuw, A., 1992. "Strategic Bargaining for the Control of Dynamic System in State-Space Form," Papers 9236, Tilburg - Center for Economic Research.
    7. 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).
    8. Frederick Ploeg & Aart Zeeuw, 1992. "International aspects of pollution control," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(2), pages 117-139, March.
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    Citations

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    Cited by:

    1. repec:wsi:igtrxx:v:12:y:2010:i:03:n:s0219198910002672 is not listed on IDEAS
    2. CHANDER, Parkash & TULKENS, Henry & VAN YPERSELE, Jean - Pascal & WILLEMS, Stefane, 1999. "The Kyoto protocol: an economic and game theoretic interpretation," CORE Discussion Papers 1999025, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. VAN STEENBERGHE, Vincent, 2004. "Core-stable and equitable allocations of greenhouse gas emission permits," CORE Discussion Papers 2004075, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. GERMAIN, Marc & VAN STEENBERGHE, Vincent, 2001. "Constraining equitable allocations of tradable greenhouse gases emission quotas by acceptability," CORE Discussion Papers 2001005, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    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. Richard S.J. Tol & Wietze Lise & Benoit Morel & Bob C.C. van der Zwaan, 2001. "Technology Development And Diffusion And Incentives To Abate Greenhouse Gas Emissions," Working Papers FNU-6, Research unit Sustainability and Global Change, Hamburg University, revised Feb 2001.
    7. repec:ebl:ecbull:v:3:y:2003:i:3:p:1-10 is not listed on IDEAS
    8. Michael Finus & Juan-Carlos Altamirano-Cabrera & Ekko Ierland, 2005. "The effect of membership rules and voting schemes on the success of international climate agreements," Public Choice, Springer, vol. 125(1), pages 95-127, July.
    9. 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.
    10. Charles Figuières & Magali Verdonck, 2003. "On the Core of an Economy with Multilateral and Multidimensional Environmental Externalities," Economics Bulletin, AccessEcon, vol. 3(3), pages 1-10.
    11. Germain, Marc & Toint, Philippe & Tulkens, Henry & de Zeeuw, Aart, 2003. "Transfers to sustain dynamic core-theoretic cooperation in international stock pollutant control," Journal of Economic Dynamics and Control, Elsevier, vol. 28(1), pages 79-99, October.

    More about this item

    Keywords

    transfrontier pollution; stock pollutant; dynamic cooperative games; coalitions; core solution.;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • H4 - Public Economics - - Publicly Provided Goods
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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