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The Timing of Climate Agreements under Multiple Externalities

Author

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  • Schmidt, Robert C.
  • Strausz, Roland

Abstract

We study the potential of cooperation in global emission abatements with multiple externalities. Using a two-country model without side-payments, we identify the strategic effects under different timing regimes of cooperation. We obtain a positive complementarity effect of long-term cooperation in abatement on R&D levels that boosts potential bene?t of long-term cooperation and a redistributive effect that destabilizes long-term cooperation when countries are asymmetric. We show that whether and what type of cooperation is sustainable, depends crucially on the kind rather than on the magnitude of asymmetries.

Suggested Citation

  • Schmidt, Robert C. & Strausz, Roland, 2011. "The Timing of Climate Agreements under Multiple Externalities," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 366, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  • Handle: RePEc:trf:wpaper:366
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    File URL: https://epub.ub.uni-muenchen.de/13188/1/366.pdf
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    References listed on IDEAS

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    Cited by:

    1. May Elsayyad & Florian Morath, 2016. "Technology Transfers For Climate Change," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57, pages 1057-1084, August.

    More about this item

    Keywords

    climate treaty; timing of cooperation; multiple externalities; long-term commitment;

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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