International Environmental Agreements - The Impact of Heterogeneity among Countries on Stability

Effrosyni Diamantoudi (), Eftichios Sartzetakis () and Stefania Strantza ()
Additional contact information
Effrosyni Diamantoudi: Department of Economics, Concordia University
Stefania Strantza: Department of Economics, Concordia University

Discussion Paper Series from Department of Economics, University of Macedonia

Abstract: The present paper examines the stability of self-enforcing International Environmental Agreements (IEAs) among heterogeneous countries in a two stage emission game. In the first stage each country decides whether or not to join the agreement, while in the second stage the quantity of emissions is chosen simultaneously by all countries. We use quadratic benefit and environmental damage functions and assume k types of countries that differ in their sensitivity to the global pollutant. We find that the introduction of heterogeneity does not yield larger stable coalitions. In particular, we show that, in the case of two types, when stable coalitions exist their size is very small, and, if the asymmetry is strong enough, they include only one type of countries. Moreover, heterogeneity can reduce the scope of cooperation relative to the homogeneous case. We demostrated that introducing asymmetry into a stable, under symmetry, agreement can disturb stability.

Keywords: Environmental; Agreements. (search for similar items in EconPapers)
JEL-codes: C7 D6 Q5 (search for similar items in EconPapers)
Date: 2018-06, Revised 2018-06
New Economics Papers: this item is included in nep-cdm, nep-env, nep-gth and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://aphrodite.uom.gr/econwp/pdf/dp082018.pdf
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to aphrodite.uom.gr:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
Working Paper: International Environmental Agreements - The Impact of Heterogeneity among Countries on Stability (2018)
Working Paper: International Environmental Agreements - The Impact of Heterogeneity among Countries on Stability (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mcd:mcddps:2018_08

Access Statistics for this paper

More papers in Discussion Paper Series from Department of Economics, University of Macedonia
Bibliographic data for series maintained by Theodore Panagiotidis () and Anastasia Litina ().