Dynamic Models for International Environmental Agreements

Michèle Breton, Lucia Sbragia () and Georges Zaccour
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Michèle Breton: GERAD, CREF and HEC Montréal

No 2008.33, Working Papers from Fondazione Eni Enrico Mattei

Abstract: In this paper we develop a model to analyze, in a dynamic framework, how countries join international environmental agreements (IEAs). In the model, where countries suffer from the same environmental damage as a result of the total global emissions, a non-signatory country decides its emissions by maximizing its own welfare, whereas a signatory country decides its emissions by maximizing the aggregate welfare of all signatory countries. Signatory countries are assumed to be able to punish the non-signatories at a cost. When countries decide on their pollution emissions they account for the evolution of the pollution over time. Moreover, we propose a mechanism to describe how countries reach a stable IEA. The model is able to capture situations with partial cooperation in an IEA stable over time. It also captures situations where all countries participate in a stable agreement, or situations where no stable agreement is feasible. When more than one possibility coexists, the long-term outcome of the game depends on the initial conditions (i.e. the size of the initial group of signatory countries and the pollution level).

Keywords: International Environmental Agreements; Non-Cooperative Dynamic Game; Coalition Stability (search for similar items in EconPapers)
JEL-codes: C73 Q53 (search for similar items in EconPapers)
Date: 2008-03
New Economics Papers: this item is included in nep-ene, nep-env, nep-gth and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: A Dynamic Model for International Environmental Agreements (2010)
Working Paper: Dynamic Models for International Environmental Agreements (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2008.33

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