R&D Cooperation and the Stability of International Environmental Agreements

Carlo Carraro () and Domenico Siniscalco

No 1154, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: International agreements to protect the global environment are typically difficult to reach. In principle they should be profitable for all players involved in the negotiation. Even when they are profitable, however, they are often unstable due to the incentive to free-ride (enjoying the clean environment provided by others' emission reduction without paying the cost). One possible way to overcome this problem is to link the unstable environmental agreement to other agreements which are profitable and stable. This paper presents a model where an environmental negotiation, which is profitable but unstable, is `stabilized' by linking it to an agreement on R&D cooperation, which is shown to be profitable and stable. The optimality of this linkage is also discussed.

Keywords: Coalition; Environment; Global Warming; Innovation; Negotiations (search for similar items in EconPapers)
JEL-codes: C7 C72 F02 O33 Q2 (search for similar items in EconPapers)
Date: 1995-04
References: Add references at CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1154 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

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:cpr:ceprdp:1154

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1154

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().