 Solving the global warming problem: beyond markets, simple mechanisms may help!David Martimort and Wilfried Sand-Zantman PSE-Ecole d'économie de Paris (Postprint) from HAL Abstract: his paper discusses the feasibility and performances of simple mechanisms to implement international environmental agreements in the multilateral externalities context of global warming. Asymmetric information and voluntary participation by sovereign and heterogeneous countries are key constraints on the design of those agreements. Mechanisms must prevent two sorts of free-riding problems - free riding in effort provision and free riding in participation. As markets might fail to solve simultaneously those two problems, we construct instead a simple menu of options that trades off the provision of incentives for participating countries and the provision of incentives to participate. With such a mechanism, all countries voluntarily contribute to a fund, although at different intensities, but only the most efficient ones effectively reduce their pollution below its 'business as usual' level. Keywords: International; environmental; agreements (search for similar items in EconPapers) Published in Canadian Journal of Economics, 2013, 46 (2), pp.361-378. ⟨10.1111/caje.12016⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:halshs-00833194 DOI: 10.1111/caje.12016 Access Statistics for this paper More papers in PSE-Ecole d'économie de Paris (Postprint) from HAL |
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