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Cooperation in a dynamic setting with asymmetric environmental valuation and responsibility

Author

Listed:
  • Francisco Cabo

    (UVa - Universidad de Valladolid [Valladolid])

  • Mabel Tidball

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier)

Abstract

We analyze a dynamic environmental agreement between two regions. We assume that the agreement is jointly protable, because the eort associated with emission reductions is overcompensated by a cleaner environment in the future The two regions are asymmetric in two respects: their value of a cleaner environment is dierent, and they are responsible for the initial environmental problem in dierent ways. Because the benets of a cleaner environment cannot be transferred, we propose a mechanism on how to share the eorts of lowering current emissions, satisfying two main properties. The rst property is a benets pay principle: the greater one region's relative benet from cooperation, the greater must be its relative contribution. The second property is, a polluter pay principle: a region's relative contribution increases with its responsibility. Moreover, the sharing scheme must be time consistent. At any intermediate time, no country can do better by deviating from cooperation.*

Suggested Citation

  • Francisco Cabo & Mabel Tidball, 2022. "Cooperation in a dynamic setting with asymmetric environmental valuation and responsibility," Post-Print hal-03276451, HAL.
    • Handle: RePEc:hal:journl:hal-03276451
    DOI: 10.1007/s13235-021-00395-y
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    Cited by:

    1. Victor Champonnois & Katrin Erdlenbruch, 2020. "Willingness of households to reduce flood risk in southern France," Working Papers hal-02586069, HAL.
    2. Florian Wagener, 2022. "Dynamic Games in Environmental Economics and Management," Dynamic Games and Applications, Springer, vol. 12(3), pages 747-750, September.
    3. Parilina, Elena M. & Zaccour, Georges, 2024. "Payment schemes for sustaining cooperation in dynamic games played over event trees," European Journal of Operational Research, Elsevier, vol. 313(3), pages 1200-1216.
    4. Paul Chiambaretto & Jonathan Maurice & Marc Willinger, 2020. "Value creation and value appropriation In innovative coopetition projects," Working Papers hal-02497321, HAL.
    5. Mathias Berthod, 2020. "Commitment and efficiency-inducing tax and subsidy scheme in the development of a clean technology," Working Papers hal-02489971, HAL.
    6. Mathias Berthod, 2020. "Commitment and efficiency-inducing tax and subsidy scheme in the development of a clean technology," CEE-M Working Papers hal-02489971, CEE-M, Universtiy of Montpellier, CNRS, INRA, Montpellier SupAgro.
    7. Kuzyutin, Denis & Smirnova, Nadezhda, 2023. "A dynamic multicriteria game of renewable resource extraction with environmentally concerned players," Economics Letters, Elsevier, vol. 226(C).

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