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Cooperation, Stability and Self-Enforcement in International Environmental Agreements: A Conceptual Discussion

Author

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  • Parkash CHANDER

    () (Department of Economics, National University of Singapore)

  • Henry TULKENS

    () (CORE, Université Catholique de Louvain, Louvain-la-Neuve, Belgium)

Abstract

In essence, any international environmental agreement (IEA) implies cooperation of a form or another. The paper seeks for logical foundations of this. It first deals with how the need for cooperation derives from the public good aspect of the externalities involved, as well as with where the source of cooperation lies in cooperative game theory. In either case, the quest for efficiency is claimed to be at the root of cooperation. Next, cooperation is considered from the point of view of stability. After recalling the two competing concepts of stability in use in the IEA literature, new insights on the nature of the gamma core in general are given as well as of the Chander-Tulkens solution within the gamma core. Free riding is also evaluated in relation with the alternative forms of stability under scrutiny. Finally, it is asked whether with the often mentioned virtue of “self enforcement” any conceptual gain is achieved, different from what is meant by efficiency and stability. A skeptical answer is offered, as a reply to Barrett’s (2003) attempt at giving the notion a specific content.

Suggested Citation

  • Parkash CHANDER & Henry TULKENS, 2006. "Cooperation, Stability and Self-Enforcement in International Environmental Agreements: A Conceptual Discussion," SCAPE Policy Research Working Paper Series 0609, National University of Singapore, Department of Economics, SCAPE.
  • Handle: RePEc:sca:scaewp:0609
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    File URL: http://www.fas.nus.edu.sg/ecs/pub/wp-scape/0609.pdf
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    References listed on IDEAS

    as
    1. John Roberts, 1979. "Incentives in Planning Procedures for the Provision of Public Goods," Review of Economic Studies, Oxford University Press, vol. 46(2), pages 283-292.
    2. Parkash Chander, 2003. "The ?-Core and Coalition Formation," Working Papers 2003.94, Fondazione Eni Enrico Mattei.
    3. 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.
    4. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-894, Supplemen.
    5. CHANDER, Parkash & TULKENS, Henry & VAN YPERSELE, Jean - Pascal & WILLEMS, Stefane, 1999. "The Kyoto protocol: an economic and game theoretic interpretation," CORE Discussion Papers 1999025, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Johan Eyckmans & Michael Finus, 2004. "An Almost Ideal Sharing Scheme for Coalition Games with Externalities," Energy, Transport and Environment Working Papers Series ete0414, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
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    9. Parkash Chander & Henry Tulkens, 1995. "A core-theoretic solution for the design of cooperative agreements on transfrontier pollution," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 2(2), pages 279-293, August.
    10. Carlo Carraro & Barbara Buchner, 2005. "Regional and Sub-Global Climate Blocs.A Game-Theoretic Perspective on Bottom-up Climate Regimes," Working Papers 2005.21, Fondazione Eni Enrico Mattei.
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    Cited by:

    1. Dritan Osmani & Richard S.J. Tol, 2008. "Evolution in time of Farsightedly Stable Coalitions: An Application of FUND," Working Papers FNU-162, Research unit Sustainability and Global Change, Hamburg University, revised May 2008.
    2. Gary D. Libecap, 2014. "Addressing Global Environmental Externalities: Transaction Costs Considerations," Journal of Economic Literature, American Economic Association, vol. 52(2), pages 424-479, June.
    3. Ngo Van Long, 2014. "The Green Paradox in Open Economies," CESifo Working Paper Series 4639, CESifo Group Munich.
    4. Peter Cramton & Steven Stoft, 2010. "International Climate Games: From Caps to Cooperation," Papers of Peter Cramton 10icg, University of Maryland, Department of Economics - Peter Cramton, revised 2010.
    5. repec:dau:papers:123456789/4069 is not listed on IDEAS
    6. BRECHET, Thierry & GERARD, François & TULKENS, Henry, 2007. "Climate coalitions: a theoretical and computational appraisal," CORE Discussion Papers 2007003, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Wolfgang Buchholz & Alexander Haupt & Wolfgang Peters, 2016. "Equity as a Prerequisite for Stability of Cooperation on Global Public Good Provision," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(1), pages 61-78, September.
    8. Dritan Osmani & Richard S J Tol, 2008. "A Short Note on Joint Welfare Maximization Assumption," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(3), pages 22-39, August.
    9. Dritan Osmani & Richard S.J. Tol, 2007. "Toward Farsightedly Stable International Environmental Agreements, Part two," Working Papers FNU-149, Research unit Sustainability and Global Change, Hamburg University, revised Oct 2007.
    10. Beard, Rodney & Mallawaarachchi, Thilak, 2011. "Are international environmental agreements stable ex-post?," MPRA Paper 34303, University Library of Munich, Germany.
    11. Gary D. Libecap, 2013. "Addressing Global Environmental Externalities: Transaction Costs Considerations," NBER Working Papers 19501, National Bureau of Economic Research, Inc.
    12. Meißner, Nathalie, 2013. "The incentives of private companies to invest in protected area certificates: How coalitions can improve ecosystem sustainability," Ecological Economics, Elsevier, vol. 95(C), pages 148-158.
    13. Tulkens, Henry, 2014. "Internal vs. core coalitional stability in the environmental externality game: A reconciliation," CORE Discussion Papers 2014058, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    14. Jin Zhugang & Can Wang & Wenjia Cai, 2013. "Cooperation is essential for 2 centigrade degrees Target: a new perspective from the Dynamic Game Model," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 5(1), pages 100-105, June.

    More about this item

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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