EconPapers    
Economics at your fingertips  
 

Economic analysis of international environmental agreements: lessons learnt 2000–2020

Nicky R. M. Pouw (), Hans-Peter Weikard and Richard B. Howarth ()
Additional contact information
Nicky R. M. Pouw: University of Amsterdam
Richard B. Howarth: Dartmouth University

International Environmental Agreements: Politics, Law and Economics, 2022, vol. 22, issue 2, No 4, 279-294

Abstract: Abstract On the occasion of the 20th anniversary of International Environmental Agreements: Politics, Law & Economics, we conduct an extensive review of papers published in this journal that address the economic dimensions of international environmental agreements (IEAs). We focus particularly on the lessons learnt from this body of literature and the implications for the assessment and design of IEAs in relation to goals such as efficiency, effectiveness, and equity. Our key conclusions run as follows. First, at the international level, universal coalitions are more cost-efficient and effective than fragmented regimes, but more difficult to negotiate and less stable. Second, in developing countries, there is need for substantial external funding to cover the short-run costs of environmental compliance. Third, market-based solutions have been increasingly applied in international agreements but with mixed results. For example, cap-and-trade systems have the potential to achieve greenhouse gas emissions reductions and least economic cost. But in the provisioning of water services, private sector solutions often result in outcomes that are unaffordable for low-income groups or nonviable for businesses, suggesting well-designed public–private partnerships. At the international level, Green Bond markets can attract investors for climate and environmental projects, but implementation failures tend to weaken outcomes. Finally, in practical politics, economically optimal designs are rarely achieved. Future applied economic research should therefore critically investigate institutions and the scope for their reform. Gains in knowledge are expected to come from economic analyses taking a broader perspective on “the economy”, taking institutions and social and ecological relations into account from the start.

Keywords: Economics of international environmental agreements; Lessons learnt; Market mechanisms; Efficiency; Effectiveness; Equity (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10784-022-09576-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:ieaple:v:22:y:2022:i:2:d:10.1007_s10784-022-09576-5

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10784

DOI: 10.1007/s10784-022-09576-5

Access Statistics for this article

International Environmental Agreements: Politics, Law and Economics is currently edited by Joyeeta Gupta

More articles in International Environmental Agreements: Politics, Law and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2023-11-13
Handle: RePEc:spr:ieaple:v:22:y:2022:i:2:d:10.1007_s10784-022-09576-5