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On the economics of international environmental agreements

  • Stähler, Frank

This paper demonstrates that partial cooperation with respect to the use of an international environmental resource can emerge when countries are able to opt to breach an agreement. Although the option of non-compliance restricts the set of coalitions on those which embrace merely two members, broader cooperation can emerge when these two countries compensate a third country for extra reduction efforts. The paper discusses also a reversible and- a irreversible technology option and demonstrates that compensating a third country for the introduction of an irreversible technology may be even advantageous for the donors when this technology incurs higher costs than a reversible one.

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File URL: http://econstor.eu/bitstream/10419/46933/1/257084347.pdf
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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 600.

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Date of creation: 1993
Date of revision:
Handle: RePEc:kie:kieliw:600
Contact details of provider: Postal: Kiellinie 66, D-24105 Kiel
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  1. Joseph Farrell and Eric Maskin., 1987. "Renegotiation in Repeated Games," Economics Working Papers 8759, University of California at Berkeley.
  2. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 661465000000000387, David K. Levine.
  3. Stähler, Frank, 1992. "Pareto improvements by in-kind-transfers," Kiel Working Papers 541, Kiel Institute for the World Economy.
  4. van Damme, Eric, 1989. "Renegotiation-proof equilibria in repeated prisoners' dilemma," Journal of Economic Theory, Elsevier, vol. 47(1), pages 206-217, February.
  5. Evans, Robert & Maskin, Eric, 1989. "Efficient renegotiation--proof equilibria in repeated games," Games and Economic Behavior, Elsevier, vol. 1(4), pages 361-369, December.
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