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An international agreement with full participation to tackle the stock of greenhouse gases

  • Kratzsch, Uwe
  • Sieg, Gernot
  • Stegemann, Ulrike

This paper analyzes greenhouse gas emissions that build up an atmospheric stock which depreciates over time. Weakly renegotiation-proof and subgame perfect equilibria in a game of international emission reduction exist if countries put a sufficiently high weight on future payoffs, even though there is a discontinuity in the required discount factor due to the integrity of the number of punishing countries. Treaties are easier to reach if the gas depreciates slowly.

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File URL: http://mpra.ub.uni-muenchen.de/31977/1/MPRA_paper_31977.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 31977.

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Date of creation: 02 Jul 2011
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Handle: RePEc:pra:mprapa:31977
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  1. Scott Barrett, 2002. "Consensus Treaties," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(4), pages 529-, December.
  2. Hans-Werner Sinn, 2007. "Public Policies against Global Warming," CESifo Working Paper Series 2087, CESifo Group Munich.
  3. Farrell, Joseph & Maskin, Eric, 1989. "Renegotiation in repeated games," Games and Economic Behavior, Elsevier, vol. 1(4), pages 327-360, December.
  4. Asheim, Geir B. & Froyn, Camilla Bretteville & Hovi, Jon & Menz, Fredric C., 2006. "Regional versus global cooperation for climate control," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 93-109, January.
  5. Dutta, Prajit K. & Radner, Roy, 2009. "A strategic analysis of global warming: Theory and some numbers," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 187-209, August.
  6. Kratzsch, Uwe & Sieg, Gernot & Stegemann, Ulrike, 2010. "A full participation agreement on global emission reduction through strategic investments in R&D," Economics Department Working Paper Series 10, Technische Universität Braunschweig, Economics Department.
  7. Evans, Robert & Maskin, Eric, 1989. "Efficient renegotiation--proof equilibria in repeated games," Games and Economic Behavior, Elsevier, vol. 1(4), pages 361-369, December.
  8. Hans-Werner Sinn, 2008. "Public policies against global warming: a supply side approach," International Tax and Public Finance, Springer, vol. 15(4), pages 360-394, August.
  9. Froyn, Camilla Bretteville & Hovi, Jon, 2008. "A climate agreement with full participation," Economics Letters, Elsevier, vol. 99(2), pages 317-319, May.
  10. Geir Asheim & Bjart Holtsmark, 2009. "Renegotiation-Proof Climate Agreements with Full Participation: Conditions for Pareto-Efficiency," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(4), pages 519-533, August.
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