An Empirical Assessment of Measures to Enhance the Success of Global Climate Treaties*

Johan Eyckmans () and Michael Finus ()

Energy, Transport and Environment Working Papers Series from KU Leuven, Department of Economics - Research Group Energy, Transport and Environment

Abstract: We analyze important forces that hamper the formation of successful self-enforcing agreements to mitigate global warming. The analysis combines two modules: a) a computable general equilibrium model that captures the feedback between the economy, environmental damages and the climate system and b) a game theoretic model that determines stable coalitions in the presence of free-riding incentives. We consider two types of measures to enhance the success of international environmental treaty-making: a) transfers, aiming at balancing asymmetric gains from cooperation; b) institutional changes, aiming at making it more difficult to upset stability of a treaty. We find that institutional changes may be as important as transfers and should therefore receive more attention in future international negotiations.

Keywords: design of climate treaty protocol; coalition formation; non-cooperative game theory; integrated assessment model (search for similar items in EconPapers)
JEL-codes: C68 C72 H41 Q25 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2004-06
New Economics Papers: this item is included in nep-env
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ete:etewps:ete0406

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