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Regional and sub-global climate blocs. A game-theoretic perspective on bottom-up climate regimes

Author

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  • Carlo Carraro

    (Department of Economics, University Of Venice Ca� Foscari)

  • Barbara Buchner

Abstract

controlling GHG emissions without the involvement of countries such as China, India, the United States, Aust rali a, and possibly other developing countries. This highlights an unambiguous weakness of the Kyoto Protocol, where the aforementioned countries either have no binding emission targets or have decided not to comply with their targets . Therefore, when discussing possible post-Kyoto scenarios, it is crucial to priori tise part icipation incentives for all countries, especially those without explicit or with insufficient abatement targets. This paper offers a bottom-up game-theoretic perspective on participation incentives. Rather than focusing on issue linkage, t ransfers or burden sharing as tools to enhance the incentives to par t icipate in a climate agreement, thi s paper aims at exploring whether a di fferent policy approach could lead more count ries to adopt ef fective climate cont rol policies. This policy approach is explicitly bottom-up, namely i t gives each country the freedom to sign agreements and deals, bilateral ly or multila terally, with other countries, without being constrained by any globa l protocol or convention. This study provides a game-theoretic assessment of this policy approach and then evaluates empirically the possible endogenous emergence of single or multi ple climate coalitions. Welfare and technological consequences of different mul tiple bloc climate regimes will be assessed and their overall environmental effectiveness will be discussed.

Suggested Citation

  • Carlo Carraro & Barbara Buchner, 2006. "Regional and sub-global climate blocs. A game-theoretic perspective on bottom-up climate regimes," Working Papers 2006_10, Department of Economics, University of Venice "Ca' Foscari".
  • Handle: RePEc:ven:wpaper:2006_10
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    Cited by:

    1. Richard S.J. Tol & Katrin Rehdanz, 2008. "A no cap but trade proposal for emission targets," Climate Policy, Taylor & Francis Journals, vol. 8(3), pages 293-304, May.
    2. Marco Rogna, 2016. "Cooperative Game Theory Applied To Ieas: A Comparison Of Solution Concepts," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 649-678, July.
    3. Chander, Parkash & Tulkens, Henry, 2006. "Cooperation, Stability and Self-Enforcement in International Environmental Agreements: A Conceptual Discussion," Coalition Theory Network Working Papers 12170, Fondazione Eni Enrico Mattei (FEEM).
    4. Katrin Rehdanz & Richard S.J. Tol, 2005. "A No Cap But Trade Proposal For Greenhous Gas Emission Reduction Targets For Brazil, China And India," Working Papers FNU-68, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2005.
    5. Chander, Parkash & Tulkens, Henry, 2006. "Cooperation, Stability and Self-Enforcement in International Environmental Agreements: A Conceptual Discussion," Coalition Theory Network Working Papers 12170, Fondazione Eni Enrico Mattei (FEEM).

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    More about this item

    Keywords

    Agreements; Climate; Incentives; Negotiations; Policy;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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