The global welfare effects of international environmental cooperation

Stefan Csordas ()

MPRA Paper from University Library of Munich, Germany

Abstract: This study explores the global welfare effects of international environmental agreements (IEAs) that coordinate emission policies between exporter countries. We show that, when export markets are imperfectly competitive, IEAs might cause a global welfare loss even if non-signatories benefit from lower emission levels. This result is due to a loss of consumer surplus in importer countries. From a global welfare perspective, the desirability of IEAs depends on the size of the domestic market for the export good and the harmfulness of emissions.

Keywords: Strategic environmental policy; international environmental agreements (search for similar items in EconPapers)
JEL-codes: F18 Q56 (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:20787

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