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Cooperation in international environmental negotiations due to a preference for equity

Andreas Lange and Carsten Vogt

No 01-14, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This paper demonstrates that cooperation in international environmental negotiations can be explained by preferences for equity. Within a N-country prisoner?s dilemma in which agents can either cooperate or defect, in addition to the standard non-cooperative equilibrium, cooperation of a large fraction or even of all countries can establish a Nash equilibrium. In an emission game, however, where countries can choose their abatement level continuously, equity preferences cannot improve upon the standard inefficient Nash-equilibrium. Finally, in a two stage game on coalition formation, the presence of equity-interested countries increases the coalition size and leads to efficiency gains. Here, even a stable agreement with full cooperation can be reached.

Keywords: international environmental negotiations; cooperation; equity preference; coalition formation (search for similar items in EconPapers)
JEL-codes: C7 D63 H41 Q00 (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (4)

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