International bargaining in the presence of global environmental change
Gilles Rotillon and
Environmental & Resource Economics, 1996, vol. 8, issue 3, 293-314
This model deals with the greenhouse effect, that is to say with a problem of international pollution. Through a description of the bargaining process, it aims to determine the different forms that may be taken by cooperation agreements between the countries involved. We demonstrate, in particular, that under some conditions it is always possible for the countries to reach an agreement. Such agreements are the work of a group of so-called ‘leader countries’ characterized by their commitment in favour of cooperation. These leader countries use transfers to induce other countries to join them, but they can be insufficiently attractive to convince all the countries to cooperate. So as we show in the discussion, the cooperation is not necessarily total. Therefore, the key of a common problem can be a partial cooperation and not necessarily a common cooperation. Copyright Kluwer Academic Publishers 1996
Keywords: greenhouse effect; bargaining; commitment; transfers; OECD; developing countries; cooperation (search for similar items in EconPapers)
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