Beard, Rodney and Mallawaarachchi, Thilak (2011): Are international environmental agreements stable ex-post?
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In this paper we present a model of international environmental agreements in the presence of threshold effects. The model is in the tradition of models of international environmental agreements formulated as games in partition function form. Games in partition function form allow the incorporation of external effects between players. The model is applied to global climate change agreements. The agreement involves a contract between nations as to the level of abatement of greenhouse gas emissions and how these benefits are to be shared. Benefits to emissions abatement are subject to a threshold. Consequently, we model climate as a global threshold public good. This allows a mechanism to explore incentives and disincentives for signing agreements consequent to a critical number of other players committing to an agreement. We show that thresholds may destabilize what would be an otherwise stable agreement and that combining an emissions tax with an international agreement can be used to restore stability.
|Item Type:||MPRA Paper|
|Original Title:||Are international environmental agreements stable ex-post?|
|Keywords:||International environmental agreements; threshold public good; gamma core, global warming and emissions taxation|
|Subjects:||C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C71 - Cooperative Games
H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters; Global Warming
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
|Depositing User:||Rodney Beard|
|Date Deposited:||25. Oct 2011 14:40|
|Last Modified:||20. Feb 2013 03:51|
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