International environmental agreements with support

Erik Ansink, Hans-Peter Weikard and Cees Withagen

Journal of Environmental Economics and Management, 2019, vol. 97, issue C, 241-252

Abstract: We augment the standard cartel formation game from non-cooperative coalition theory, often applied in the context of international environmental agreements, with the possibility that singletons support coalition formation without becoming coalition members themselves. We assume their support takes the form of a monetary transfer to the coalition, in order to induce larger coalitions, higher levels of public good provision and higher payoffs. We show that, under mild conditions on the costs and benefits of contributing to the public good (e.g. abatement of greenhouse gas emissions), there exist equilibria with support. Allowing for support increases payoffs to each of three types of agents: members, supporters and free-riders.

Keywords: Coalition formation; Public goods; Support; Transfers; International environmental agreements (search for similar items in EconPapers)
JEL-codes: C72 D02 H41 Q54 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (9)

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Working Paper: International Environmental Agreements with Support (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:97:y:2019:i:c:p:241-252

DOI: 10.1016/j.jeem.2018.02.001

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