Leading the Way: Coalitional Stability in Technological Cooperation & Sequential Climate Policy
The World's nations have yet to reach a truly effective treaty to control the emission of greenhouse gases.� The importance of compatibility with private incentives of individual countries has been acknowledged (at least by game theorists) in designing climate policies for the post-Kyoto world.� Individually incentive-compatible agreements, however, may still be spoilt if coalitional incentives to deviate as a group exist.� As a first step toward understanding these incentives from a game-theoretic perspective, we propose a hybrid noncooperative-cooperative game theory model of coalition formation in technology collaboration.� Serious coalitional instabilities inherent to the existing climate policy architectures are revealed.� It turns out that coalitionally stable agreements are achieved via intermediate self-selecting subcoalitions.� The sequence of coalitions forming and the size of the direct and spillover effects of R&D collaboration on countries' individual production technologies determine the effectiveness of the agreements to reduce carbon emissions.� These coalitional group motives are already becoming important in the practice of climate change negotiations.
|Date of creation:||01 Dec 2011|
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