International environmental agreements under endogenous uncertainty
This paper explores the implications of the possibility of a shift in environmental damages on the participation in environmental treaties. Using a two-period model where the probability of a regime shift increases with the first-period emissions, we examine the issue of coalition formation under both fixed and dynamic membership. Our analysis suggests that endogenous uncertainty may increase participation. Moreover, we find that full cooperation may be sustained, but only in the presence of endogenous uncertainty. Interestingly, when the shift in the environmental damage is large enough, the model provides a way to solve the "puzzle of small coalitions" found in the literature related to International Environmental Agreements (IEAs).
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: 3016 Pamplin Hall, Blacksburg, VA 24061-0316|
Web page: http://www.econ.vt.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Boucher, Vincent & Bramoullé, Yann, 2010. "Providing global public goods under uncertainty," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 591-603, October.
When requesting a correction, please mention this item's handle: RePEc:vpi:wpaper:e07-32. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Djavad Salehi-Isfahani)
If references are entirely missing, you can add them using this form.