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Political influence on non-cooperative international climate policy

Author

Listed:
  • Habla, Wolfgang
  • Winkler, Ralph

Abstract

We analyze non-cooperative international climate policy in a setting of political competition by national interest groups. In the first stage, countries decide whether to link their domestic emission permit markets to an international market, which only forms if it is supported by all countries. In the second stage, countries non-cooperatively decide on the number of tradable emission allowances. In both stages, special interest groups try to sway the government in their favor. We find that (i) both the choice of regime and the levels of domestic and global emissions only depend on the aggregate levels of organized stakes in all countries and not on their distribution among individual interest groups and (ii) an increase in lobbying influence by a particular lobby group may backfire by inducing a change towards the lobby group's less preferred regime.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Habla, Wolfgang & Winkler, Ralph, 2013. "Political influence on non-cooperative international climate policy," Munich Reprints in Economics 20680, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:20680
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    Cited by:

    1. Achim Hagen & Juan-Carlos Altamirano-Cabrera & Hans-Peter Weikard, 2021. "National political pressure groups and the stability of international environmental agreements," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 21(3), pages 405-425, September.
    2. Doda, Baran & Quemin, Simon & Taschini, Luca, 2019. "Linking permit markets multilaterally," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    3. Heyen, Daniel & Tavoni, Alessandro, 2024. "Strategic dimensions of solar geoengineering: Economic theory and experiments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 112(C).
    4. Arvaniti, Maria & Habla, Wolfgang, 2021. "The political economy of negotiating international carbon markets," Journal of Environmental Economics and Management, Elsevier, vol. 110(C).
    5. Bellelli, Francesco S. & Scarpa, Riccardo & Aftab, Ashar, 2023. "An empirical analysis of participation in international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    6. Minoru Nakada, 2020. "The impact of environmental tax revenue allocation on the consequence of lobbying activities," Economics of Governance, Springer, vol. 21(4), pages 335-349, December.
    7. Habla, Wolfgang & Winkler, Ralph, 2018. "Strategic delegation and international permit markets: Why linking May fail," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 244-250.
    8. Achim Hagen & Leonhard Kaehler & Klaus Eisenack, 2016. "Transnational Environmental Agreements with Heterogeneous Actors," Working Papers V-387-16, University of Oldenburg, Department of Economics, revised Jan 2016.
    9. Stefano Carattini & Simon Levin & Alessandro Tavoni, 2019. "Cooperation in the Climate Commons," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(2), pages 227-247.
    10. Habla, Wolfgang & Winkler, Ralph, 2015. "Strategic Delegation and Non-cooperative International Permit Markets," Working Papers in Economics 636, University of Gothenburg, Department of Economics.
    11. repec:osf:socarx:46xby_v1 is not listed on IDEAS
    12. Fabio Antoniou & Panos Hatzipanayotou & Nikos Tsakiris, 2021. "Strategic Export Motives and Linking Emission Markets," CESifo Working Paper Series 8847, CESifo.
    13. Peymaneh Safaynikoo & Mohammad Hossein Dehghani, 2021. "Impact of international lobby groups on international environmental agreements," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(2), pages 441-466, April.
    14. Gavard, Claire & Schoch, Niklas, 2021. "Climate finance and emission reductions: What do the last twenty years tell us?," ZEW Discussion Papers 21-014, ZEW - Leibniz Centre for European Economic Research.
    15. Marchiori, Carmen & Dietz, Simon & Tavoni, Alessandro, 2017. "Domestic politics and the formation of international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 115-131.
    16. Pauli Lappi, 2021. "Lobbying for size and slice of the quota," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(5), pages 1143-1162, October.
    17. Grey, Felix, 2018. "Corporate lobbying for environmental protection," Journal of Environmental Economics and Management, Elsevier, vol. 90(C), pages 23-40.
    18. Hagen, Achim & Schopf, Mark, 2024. "Political influence on international climate agreements with border carbon adjustment," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    19. Teun Schrieks & Julia Swart & Fujin Zhou & W. J. Wouter Botzen, 2023. "Lobbying, Time Preferences and Emission Tax Policy," Economics of Disasters and Climate Change, Springer, vol. 7(1), pages 1-32, March.
    20. Achim Hagen & Juan-Carlos Altamirano-Cabrera & Hans-Peter Weikard, 2016. "The Influence of Political Pressure Groups on the Stability of International Environmental Agreements," Working Papers V-391-16, University of Oldenburg, Department of Economics, revised Aug 2016.
    21. Leszek Kąsek & Olga Kiuila & Krzysztof Wójtowicz & Tomasz Żylicz, 2012. "Economic effects of differentiated climate action," Working Papers 2012-12, Faculty of Economic Sciences, University of Warsaw.
    22. Olga Kiuila, 2013. "Regional economic effects of differentiated climate action," ERSA conference papers ersa13p334, European Regional Science Association.
    23. Geum Soo Kim, 2013. "Lobbies Competition and Bilateral International Environmental Agreements," Korean Economic Review, Korean Economic Association, vol. 29, pages 81-96.
    24. Matsueda, Norimichi, 2020. "Collective vs. individual lobbying," European Journal of Political Economy, Elsevier, vol. 63(C).

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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