Multilateral negotiations over climate change policy

Ligia Pinto and Glenn Harrison

No 1, NIMA Working Papers from Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho

Abstract: Negotiations in the real world have many features which tend to be ignored inpolicy modeling. They are often multilateral, involving many negotiating parties with preferences over outcomes that can differ substantially. They are also often multi-dimensional,in the sense that several policies are negotiated over simultaneously. Trade negotiations are a prime example, as are negotiations over environmental policies toabate carbon dioxide. We demonstrate how one can formally model this type of negotiation process. We use a policy-oriented computable general equilibrium model to generate preference functions which are then used in a formal multilateral bargaining game. The case study is to climate change policy, but the main contribution is to demonstrate how one can integrate formal economic models of the impacts of policies with formal bargaining models of the negotiations over those policies.

Keywords: CGE; bilateral bargaining; CO2; Climate Change (search for similar items in EconPapers)
JEL-codes: C7 D5 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2000-05
New Economics Papers: this item is included in nep-cdm and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Journal Article: Multilateral negotiations over climate change policy (2003)
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