Simulating the impact of heterogeneity on stability and effectiveness of international environmental agreements

Irina Bakalova and Johan Eyckmans

European Journal of Operational Research, 2019, vol. 277, issue 3, 1151-1162

Abstract: This paper analyses in a systematic way the effect of benefit and cost parameter heterogeneity on the stability and effectiveness of International Environmental Agreements. Compared to existing literature, we consider a more general form of heterogeneity, different functional forms and alternative collective decision making processes in coalitions with and without transfers. Using systematic numerical simulations and novel visualization techniques, we show that transfers are crucial to overcome heterogeneity both in terms of stability and effectiveness. Without, or with limited transfers heterogeneous coalitions are often unstable and ineffective. More research on less than ideal transfer schemes and collective decision making rules is necessary to bridge the gap between theoretical models and the reality of international negotiations on transboundary pollution problems.

Keywords: OR in environment and climate change; International environmental agreements; Simulation; Asymmetry; Game theory (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S037722171930267X
Full text for ScienceDirect subscribers only

Related works:
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:eee:ejores:v:277:y:2019:i:3:p:1151-1162

DOI: 10.1016/j.ejor.2019.03.028

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().