Solving the GlobalWarming Problem: Beyond Markets, Simple Mechanisms May Help!
This paper discusses the feasibility and performances of simple mechanisms to implement international environmental agreements in the multilateral externalities context of global warming. Asymmetric information and voluntary participation by sovereign and heterogenous countries are key constraints on the design of those agreements. Mechanisms must prevent two sorts of free-riding problems - free riding in effort provision and free riding in participation. As markets might fail to solve simultaneously those two problems, we construct instead a simple menu of options that trades off the provision of incentives for participating countries and the provision of incentives to participate.With such mechanism, all countries voluntary contribute to a fund, although at different intensities, but only the most efficient ones effectively reduce their pollution below its “business as usual” level.
|Date of creation:||Oct 2012|
|Publication status:||Published in Canadian Journal of Economics, vol. 46, n°2, University of Toronto Press, Toronto, mai 2013, p. 361-378.|
|Contact details of provider:|| Postal: Manufacture des Tabacs, Aile Jean-Jacques Laffont, 21 Allée de Brienne, 31000 TOULOUSE|
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- Chander, Parkash & Tulkens, Henry, 1994.
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886, California Institute of Technology, Division of the Humanities and Social Sciences.
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IDEI Working Papers
527, Institut d'Économie Industrielle (IDEI), Toulouse.
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TSE Working Papers
11-251, Toulouse School of Economics (TSE), revised 30 Apr 2013.
- repec:adr:anecst:y:2011:i:101-102:p:16 is not listed on IDEAS
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