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Political-support lobbies responses to international environmental agreements

  • Houda Haffoudhi

    ()

    (LAEP)

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    Studies of the stability of international environmental agreements (IEAs) assumed a benevolent government who maximizes social welfare. The aim of our paper is to develop a theoretical framework in which the Government’s decisions are influenced by green and producer lobbies. To this end, we extend the political support approach of Hillman (1982) and model the IEA formation as a two stage non-cooperative game. Our work studies the coalition formation process and determines both coalition abatement level and the size of stable coalition. The basis conclusion that emerges from the analysis of politically motivated coalition formation is that government's decision depends not only on ecological vulnerability and abatement cost in each but also on the political strength of green lobby over industrial lobby and its capacities to give political support to the government.

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    File URL: ftp://mse.univ-paris1.fr/pub/mse/cahiers2005/J05053.pdf
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    Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number j05053.

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    Length: 19 pages
    Date of creation: Sep 2005
    Date of revision:
    Handle: RePEc:mse:wpsorb:j05053
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    1. Grossman, Gene & Helpman, Elhanan, 1993. "Trade Wars and Trade Talks," CEPR Discussion Papers 806, C.E.P.R. Discussion Papers.
    2. Cadot, O & de Mela, J & Olarreaga, M, 1996. "Lobbying and the Structure of Protection," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 96.18, Institut d'Economie et Econométrie, Université de Genève.
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    4. Devashish Mitra, 1999. "Endogenous Lobby Formation and Endogenous Protection: A Long-Run Model of Trade Policy Determination," American Economic Review, American Economic Association, vol. 89(5), pages 1116-1134, December.
    5. Rama, Martin & Tabellim, Guido, 1998. "Lobbying by capital and labor over trade and labor market policies," European Economic Review, Elsevier, vol. 42(7), pages 1295-1316, July.
    6. Chander, P. & Tulkens, H., . "A core-theoretic solution for the design of cooperative agreements on transfrontier pollution," CORE Discussion Papers RP -1158, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Welsch, Heinz, 1995. "Incentives for forty-five countries to join various forms of carbon reduction agreements," Resource and Energy Economics, Elsevier, vol. 17(3), pages 213-237, November.
    8. Conconi, P., 2000. "Can Green Lobbies Replace a World Environmental Organization," The Warwick Economics Research Paper Series (TWERPS) 548, University of Warwick, Department of Economics.
    9. d'ASPREMONT, Claude & JACQUEMIN, Alexis & GABSZEWICZ, Jean J. & WEYMARK, John A., . "On the stability of collusive price leadership," CORE Discussion Papers RP -522, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    10. Grossman, Gene M & Helpman, Elhanan, 1996. "Electoral Competition and Special Interest Politics," Review of Economic Studies, Wiley Blackwell, vol. 63(2), pages 265-86, April.
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    12. Grossman, Gene & Helpman, Elhanan, 1993. "Protection for Sale," CEPR Discussion Papers 827, C.E.P.R. Discussion Papers.
    13. Hillman, Arye L & Ursprung, Heinrich W, 1988. "Domestic Politics, Foreign Interests, and International Trade Policy," American Economic Review, American Economic Association, vol. 78(4), pages 719-45, September.
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    15. Fredriksson, Per G., 1997. "The Political Economy of Pollution Taxes in a Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 33(1), pages 44-58, May.
    16. Conconi, P., 2000. "Green and Producer Lobbies: Enemies or Allies?," The Warwick Economics Research Paper Series (TWERPS) 570, University of Warwick, Department of Economics.
    17. Hillman, Arye L, 1982. "Declining Industries and Political-Support Protectionist Motives," American Economic Review, American Economic Association, vol. 72(5), pages 1180-87, December.
    18. Fankhauser, S. & Kverndokk, S., 1992. "The Global Warming Game - Simulations of a CO2 Reduction Agreement," Memorandum 13/1992, Oslo University, Department of Economics.
    19. Carraro, Carlo & Siniscalco, Domenico, 1992. "The international dimension of environmental policy," European Economic Review, Elsevier, vol. 36(2-3), pages 379-387, April.
    20. 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.
    21. 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.
    22. Sprinz, Detlef & Vaahtoranta, Tapani, 1994. "The interest-based explanation of international environmental policy," International Organization, Cambridge University Press, vol. 48(01), pages 77-105, December.
    23. Aidt, Toke S., 1998. "Political internalization of economic externalities and environmental policy," Journal of Public Economics, Elsevier, vol. 69(1), pages 1-16, July.
    24. Tahvonen, Olli, 1994. "Carbon dioxide abatement as a differential game," European Journal of Political Economy, Elsevier, vol. 10(4), pages 685-705, December.
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