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International Environmental Agreement: a Dynamic Model of Emissions Reduction

  • Marta Biancardi

    ()

  • Andrea Di Liddo

    ()

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    We model an International Environmental Agreement as a two stages game: during the first stage each country decides whether or not to join the agreement while, in the second stage, the quantity of emissions reduction is choosen. Players determine their abatement levels in a dynamic setting, given the dynamics of pollution stock and the strategies of other countries. Players may act cooperatively, building coalitions and acting according to the interest of the coalition, or they make their choices taking care of their individual interest only. Countries can behave myopically or in a farsighted way. As a consequence, the size of stable coalition can completely change. A continuous time framework is choosen in the present paper and consequently the problem is studied by a differential game.

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    File URL: http://www.dsems.unifg.it/q132008.pdf
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    Paper provided by Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia in its series Quaderni DSEMS with number 13-2008.

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    Length: 17 pages
    Date of creation: Sep 2008
    Date of revision:
    Handle: RePEc:ufg:qdsems:13-2008
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    Web page: http://www.dsems.unifg.it

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    1. DIAMANTOUDI, Effrosyni & SARTZETAKIS, Eftichios, 2002. "International environmental agreements - The role of foresight," CORE Discussion Papers 2002061, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Effrosyni Diamantoudi & Eftichios S. Sartzetakis, 2006. "Stable International Environmental Agreements: An Analytical Approach," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(2), pages 247-263, 05.
    3. CHANDER, Parkash & TULKENS, Henry, 1994. "A Core-Theoretic Solution for the Design of Cooperative Agreements on Transfrontier Pollution," CORE Discussion Papers 1994048, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Alistair Ulph & Santiago J. Rubio, 2004. "Self-Enforcing International Environmental Agreements Revisited," Working Papers. Serie AD 2004-23, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    5. Santiago Rubio & Begoña Casino, 2005. "Self-enforcing international environmental agreements with a stock pollutant," Spanish Economic Review, Springer, vol. 7(2), pages 89-109, 06.
    6. de Zeeuw, A.J., 2008. "Dynamic effects on the stability of international environmental agreements," Other publications TiSEM 41f27f71-d6e6-463e-9b03-f, Tilburg University, School of Economics and Management.
    7. 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.
    8. Carraro, Carlo & Siniscalco, Domenico, 1991. "Strategies for the International Protection of the Environment," CEPR Discussion Papers 568, C.E.P.R. Discussion Papers.
    9. de Zeeuw, Aart, 2008. "Dynamic effects on the stability of international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 163-174, March.
    10. Johan Eyckmans, 2001. "On the farsighted stability of the Kyoto Protocol," Energy, Transport and Environment Working Papers Series ete0103, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
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