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Dynamic core-theoretic cooperation in a two-dimensional international environmental model

  • GERMAIN, Marc
  • TULKENS, Henry

    ()

    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

  • MAGNUS, Alphonse

This article deals with cooperation issues in international pollution problems in a two-dimensional dynamic framework implied by the accumulation of the pollutant and of the capital goods. Assuming that countries do reevaluate at each period the advantages to cooperate or not given the current stocks of pollutant and capital, and under the assumption that damage cost functions are linear, we define at each period of time a transfer scheme between countries, which makes cooperation better for each of them than non-cooperation. This transfer scheme is also strategically stable in the sense that it discourages partial coalitions.

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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2009021.

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Date of creation: 01 Apr 2009
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Handle: RePEc:cor:louvco:2009021
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  1. repec:cai:recosp:reco_p1998_49n6_1435 is not listed on IDEAS
  2. 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).
  3. 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.
  4. Kaitala, Veijo & Pohjola, Matti & Tahvonen, Olli, 1990. "Transboundary Air Pollution and Soil Acidification: A Dynamic Analysis of an Acid Rain Game between Finland and the USSR," Discussion Papers 344, The Research Institute of the Finnish Economy.
  5. CHANDER, Parkash & TULKENS, Henry, 1995. "The Core of an Economy with Multilateral Environmental Externalities," CORE Discussion Papers 1995050, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. EYCKMANS, Johan & TULKENS, Henry, 1999. "Simulating coalitionally stable burden sharing agreements for the climate change problem," CORE Discussion Papers 1999026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. d'ASPREMONT, Claude & GABSZEWICZ, Jean J., . "On the stability of collusion," CORE Discussion Papers RP -702, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. Germain, M. & Toint, Ph. & Tulkens, H. & de Zeeuw, A.J., 2003. "Transfers to sustain dynamic core-theoretic cooperation in international stock pollutant control," Other publications TiSEM 8953bc6e-fc65-4fd7-a2d1-6, Tilburg University, School of Economics and Management.
  9. GERMAIN, Marc & TULKENS, Henry & DE ZEEUW, Aart, . "Stabilité stratégique en matière de pollution internationale avec effet de stock. Le cas linéaire," CORE Discussion Papers RP -1351, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Frederick Ploeg & Aart Zeeuw, 1992. "International aspects of pollution control," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(2), pages 117-139, March.
  11. Santiago Rubio & Alistair Ulph, 2003. "An Infinite-Horizon Model of Dynamic Membership of International Environmental Agreements," Working Papers 2003.57, Fondazione Eni Enrico Mattei.
  12. Joseph E. Stiglitz & G. Frank Mathewson (ed.), 1986. "New Developments in the Analysis of Market Structure," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262690934, June.
  13. Parkash Chander & Henry Tulkens, 1995. "A core-theoretic solution for the design of cooperative agreements on transfrontier pollution," International Tax and Public Finance, Springer, vol. 2(2), pages 279-293, August.
  14. CHANDER, Parkash & TULKENS, Henry, . "Theoretical foundations of negotiations and cost sharing in transfrontier pollution problems," CORE Discussion Papers RP -983, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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