Cooperation in a dynamic setting with asymmetric environmental valuation and responsibility

Francisco Cabo and Mabel Tidball ()
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Mabel Tidball: CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier

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Abstract: We analyze a dynamic environmental agreement between two regions. We assume that the agreement is jointly protable, because the eort associated with emission reductions is overcompensated by a cleaner environment in the future The two regions are asymmetric in two respects: their value of a cleaner environment is dierent, and they are responsible for the initial environmental problem in dierent ways. Because the benets of a cleaner environment cannot be transferred, we propose a mechanism on how to share the eorts of lowering current emissions, satisfying two main properties. The rst property is a benets pay principle: the greater one region's relative benet from cooperation, the greater must be its relative contribution. The second property is, a polluter pay principle: a region's relative contribution increases with its responsibility. Moreover, the sharing scheme must be time consistent. At any intermediate time, no country can do better by deviating from cooperation.*

Keywords: cooperative differential game; distribution procedure; time consistency; polluter pay principle; benets pay principle (search for similar items in EconPapers)
Date: 2022
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Published in Dynamic Games and Applications, 2022, 12, pp.844-871. ⟨10.1007/s13235-021-00395-y⟩

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Related works:
Journal Article: Cooperation in a Dynamic Setting with Asymmetric Environmental Valuation and Responsibility (2022)
Working Paper: Cooperation in a dynamic setting with asymmetric environmental valuation and responsibility (2020)
Working Paper: Cooperation in a dynamic setting with asymmetric environmental valuation and responsibility (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03276451

DOI: 10.1007/s13235-021-00395-y

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