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North-South Climate Change Negotiations: a Sequential Game with Asymmetric Information

  • Alejandro Caparrós

    (CNRS-EHESS-CIRED, France)

  • Jean-Christophe Pereau

    (OEP, University of Marne-la-Vallée, France)

  • Tarik Tazdaït

    (CNRS-EHESS-CIRED, France)

This article determines the conditions under which the Southern countries should act together, or separately, while negotiating with the North about climate change policy and about the conditions for future Southern engagement. The paper models the international negotiations with complete and with asymmetric information in a dynamic framework. Results show that, depending on their characteristics, the different players can obtain benefits delaying the moment of the agreement.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2003.09.

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Date of creation: Jan 2003
Date of revision:
Handle: RePEc:fem:femwpa:2003.09
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  7. Jean-Christophe Pereau & Tarik Tazdait, 2001. "Co-operation and Unilateral Commitment in the Presence of Global Environmental Problems," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(3), pages 225-239, November.
  8. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 661465000000000387, David K. Levine.
  9. Kreps, David M & Wilson, Robert, 1982. "Sequential Equilibria," Econometrica, Econometric Society, vol. 50(4), pages 863-94, July.
  10. Yukihiko Funaki & Takehiko Yamato, 1999. "The core of an economy with a common pool resource: A partition function form approach," International Journal of Game Theory, Springer, vol. 28(2), pages 157-171.
  11. Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics.
  12. Harsanyi, John C, 1995. "Games with Incomplete Information," American Economic Review, American Economic Association, vol. 85(3), pages 291-303, June.
  13. Carraro, Carlo & Siniscalco, Domenico, 1991. "Strategies for the International Protection of the Environment," CEPR Discussion Papers 568, C.E.P.R. Discussion Papers.
  14. Jon Hovi, 2001. "Decentralized Enforcement, Sequential Bargaining and the Clean Development Mechanism," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 27, pages 135-152.
  15. Henry Van Egteren & Jianmin Tang, 1997. "Maxium Victim Benefit: A Fair Division Process in Transboundary Pollution Problems," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 10(4), pages 363-386, December.
  16. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-94, Supplemen.
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