Some reflections on multilateral environmental agreements

Frank Stähler

No 647, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: In an international setting, sovereignty of countries imposes serious problems on compliance and participation for a multilateral environmental agreement. This paper discusses both problems simultaneously in a three-country-setting. It employs a repeated-game-model and develops some basic conditions which agreements must meet. These conditions are applied on a specific model which allows only a subcoalition of two countries to join an agreement. However, this subcoalition is able to introduce transfer policies which initiate extra reductions of the outsider country. The paper shows that transfer policies may be based on a cost-inferior technology which makes non-compliance less attractive.

Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:647

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