International Cooperation In Pollution Control
In this paper the profitability and stability of an International Environmental Agreement among N identical countries that emit a pollutant are studied using a standard quadratic net benefit function. The static analysis shows that only a bilateral agreement could be self-enforcing independently of the number of countries affected by the externality and the gains coming from cooperation. It is also shown that this result occurs both when the coalition takes as given the emissions of nonsignatories and when it acts as the leader of the game. In the second part of the paper a differential game is proposed in order to analyze the stock externality due to accumulated emissions. Similar results to the ones obtained for the static model are derived both for an open-loop Nash equilibrium and for a feedback Nash equilibrium in linear strategies.
|Date of creation:||Jun 2001|
|Date of revision:|
|Publication status:||Published by Ivie|
|Contact details of provider:|| Postal: |
Phone: +34 96 319 00 50
Fax: +34 96 319 00 55
Web page: http://www.ivie.es/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Engelbert J. Dockner & Kazuo Nishimura, 1999. "Transboundary Pollution in a Dynamic Game Model," The Japanese Economic Review, Japanese Economic Association, vol. 50(4), pages 443-456, December.
- van der Ploeg, F. & de Zeeuw, A.J., 1990.
"International aspects of pollution control,"
1990-65, Tilburg University, Center for Economic Research.
- Petrakis, Emmanuel & Xepapadeas, Anastasios, 1996. "Environmental consciousness and moral hazard in international agreements to protect the environment," Journal of Public Economics, Elsevier, vol. 60(1), pages 95-110, April.
- Na, Seong-lin & Shin, Hyun Song, 1998. "International Environmental Agreements under Uncertainty," Oxford Economic Papers, Oxford University Press, vol. 50(2), pages 173-85, April.
- Tahvonen, Olli, 1994. "Carbon dioxide abatement as a differential game," European Journal of Political Economy, Elsevier, vol. 10(4), pages 685-705, December.
- Heal, Geoffrey, 1992. "International negotiations on emission control," Structural Change and Economic Dynamics, Elsevier, vol. 3(2), pages 223-240, December.
- Escapa, Marta & Gutierrez, Maria Jose, 1997. "Distribution of Potential Gains from International Environmental Agreements: The Case of the Greenhouse Effect," Journal of Environmental Economics and Management, Elsevier, vol. 33(1), pages 1-16, May.
- Henry Tulkens & Parkash Chander, 1997.
"The Core of an Economy with Multilateral Environmental Externalities,"
International Journal of Game Theory,
Springer, vol. 26(3), pages 379-401.
- 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).
- Chander, Parkash & Tulkens, Henry, 1994. "The Core of an Economy With Multilateral Environmental Externalities," Working Papers 886, California Institute of Technology, Division of the Humanities and Social Sciences.
- Karl-Göran Mäler & Aart De Zeeuw, 1998. "The Acid Rain Differential Game," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 12(2), pages 167-184, September.
- Carraro, Carlo & Siniscalco, Domenico, 1991.
"Strategies for the International Protection of the Environment,"
CEPR Discussion Papers
568, C.E.P.R. Discussion Papers.
- 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.
- Chander, Parkash & Tulkens, Henry, 1992. "Theoretical foundations of negotiations and cost sharing in transfrontier pollution problems," European Economic Review, Elsevier, vol. 36(2-3), pages 388-399, April.
- Batabyal, Amitrajeet A, 2000. "On the Design of International Environmental Agreements for Identical and Heterogeneous Developing Countries," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 560-83, July.
- Todd Sandler & Keith Sargent, 1995. "Management of Transnational Commons: Coordination, Publicness, and Treaty Formation," Land Economics, University of Wisconsin Press, vol. 71(2), pages 145-162.
- Michael Finus & Bianca Rundshagen, 1998. "Renegotiation–Proof Equilibria in a Global Emission Game When Players Are Impatient," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 12(3), pages 275-306, October.
- Barrett, Scott, 1997. "The strategy of trade sanctions in international environmental agreements," Resource and Energy Economics, Elsevier, vol. 19(4), pages 345-361, November.
- de Zeeuw, A.J., 1998. "The acid rain differential game," Other publications TiSEM f6c561bf-c603-4de7-994c-e, Tilburg University, School of Economics and Management.
- Claude d'Aspremont & Alexis Jacquemin & Jean Jaskold Gabszewicz & John A. Weymark, 1983. "On the Stability of Collusive Price Leadership," Canadian Journal of Economics, Canadian Economics Association, vol. 16(1), pages 17-25, February.
- Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-94, Supplemen.
- 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.
- Carraro, Carlo & Siniscalco, Domenico, 1998. "International Institutions and Environmental Policy: International environmental agreements: Incentives and political economy1," European Economic Review, Elsevier, vol. 42(3-5), pages 561-572, May.
- Xepapadeas, A., 1995. "Induced technical change and international agreements under greenhouse warming," Resource and Energy Economics, Elsevier, vol. 17(1), pages 1-23, May.
- Dockner Engelbert J. & Van Long Ngo, 1993. "International Pollution Control: Cooperative versus Noncooperative Strategies," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 13-29, July.
- Michael Hoel, 1992. "International environment conventions: The case of uniform reductions of emissions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(2), pages 141-159, March.
- Rubio, Santiago J. & Casino, Begona, 2001. "Competitive versus efficient extraction of a common property resource: The groundwater case," Journal of Economic Dynamics and Control, Elsevier, vol. 25(8), pages 1117-1137, August.
- 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,"
344, The Research Institute of the Finnish Economy.
- Veijo Kaitala & Matti Pohjola & Olli Tahvonen, 1992. "Transboundary air pollution and soil acidification: A dynamic analysis of an acid rain game between Finland and the USSR," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(2), pages 161-181, March.
When requesting a correction, please mention this item's handle: RePEc:ivi:wpasad:2001-21. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Departamento de Edición)
If references are entirely missing, you can add them using this form.