International Environmental Commodities and the Principal-Agent-Approach

Hans Wiesmeth
Additional contact information
Hans Wiesmeth: TU Dresden, Faculty of Business and Economics

Chapter Chapter 11 in Environmental Economics, 2022, pp 211-224 from Springer

Abstract: Abstract The increasing relevance of cross-border environmental issues is mirrored in the quest for effective allocation mechanisms for international environmental commodities. More or less detailed cost sharing proposals are part of the international climate agreements and thus become relevant “mechanisms”. For strategic goals the negotiations, which precede these international agreements, are gaining increasing importance. For example, a country wants to help or motivate others to participate effectively in activities to reduce transboundary environmental pollution. In contrast to the classic principal-agent approach, it is not so much the unobservable effort of the agent that is the main obstacle to an efficient outcome, but the question of appropriate instruments to achieve the goal. In this chapter, therefore, tools in this context are examined and their practical relevance analyzed. After a brief survey on the role of international environmental agreements as an allocation mechanism, the principal-agent approach is used to investigate stable and efficient allocations resulting from international negotiations. Mitigation strategies and adaptation strategies in relation to climate change are addressed in particular, also in a formal model.

Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:sptchp:978-3-031-05929-2_11

Ordering information: This item can be ordered from
http://www.springer.com/9783031059292

DOI: 10.1007/978-3-031-05929-2_11

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().