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International Environmental Cooperation: A New Eye on the Greenhouse Gases Emissions’ Control

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  • Mélanie Heugues

Abstract

We examine the formation of International Environmental Agreements (IEAs) modelled as a two-stage non cooperative game. Following Barrett (1994), Finus (2001) and Diamantoudi & al. (2006) and filling out their approach, we analyse the level of cooperation that can be reach when countries’ strategies are complementary. We find that when strategies exhibit weak complementarities, the unique stable agreement can consist of half the countries involved in the negotiation and thus, without any form of commitment, linkage or transfers between countries. These results, established analytically, strongly contrast with those of the previous authors and are a lot more optimistic. Nonetheless, even if the incentives to free-ride are less strong, we do not observe the formation of the “grand” coalition: not all the countries sign the agreement. We also provide some results of comparative static. We analyse, for example, the level of cooperation which only depends on the number of countries concerned with the problem of climate change and on the perception they have of its seriousness.

Suggested Citation

  • Mélanie Heugues, 2009. "International Environmental Cooperation: A New Eye on the Greenhouse Gases Emissions’ Control," Working Papers 09-04, LAMETA, Universitiy of Montpellier, revised Mar 2009.
  • Handle: RePEc:lam:wpaper:09-04
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    File URL: http://www.lameta.univ-montp1.fr/Documents/DR2009-04.pdf
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    References listed on IDEAS

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    1. Effrosyni Diamantoudi & Eftichios S. Sartzetakis, 2006. "Stable International Environmental Agreements: An Analytical Approach," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(2), pages 247-263, May.
    2. Henry Tulkens & Parkash Chander, 1997. "The Core of an Economy with Multilateral Environmental Externalities," International Journal of Game Theory, Springer;Game Theory Society, vol. 26(3), pages 379-401.
    3. Rotillon, Gilles & Tazdait, Tarik & Zeghni, Sylvain, 1996. "Bilateral or multilateral bargaining in the face of global environmental change?," Ecological Economics, Elsevier, vol. 18(2), pages 177-187, August.
    4. 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.
    5. Barrett, Scott, 2005. "The theory of international environmental agreements," Handbook of Environmental Economics,in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 28, pages 1457-1516 Elsevier.
    6. Endres, Alfred, 1997. "Increasing Environmental Awareness to Protect the Global Commons--A Curmudgeon's View," Kyklos, Wiley Blackwell, vol. 50(1), pages 3-27.
    7. 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.
    8. Barrett, Scott, 1997. "The strategy of trade sanctions in international environmental agreements," Resource and Energy Economics, Elsevier, vol. 19(4), pages 345-361, November.
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    Cited by:

    1. Mélanie Heugues, 2013. "The Global Emission Game: On the Impact of Strategic Interactions Between Countries on the Existence and the Properties of Nash Equilibria," Working Papers 2013.108, Fondazione Eni Enrico Mattei.
    2. Leonhard Kähler & Klaus Eisenack, 2016. "Strategic Complements in International Environmental Agreements: a New Island of Stability," Working Papers V-393-16, University of Oldenburg, Department of Economics, revised Aug 2016.

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