Hostname: page-component-78c5997874-4rdpn Total loading time: 0 Render date: 2024-11-07T23:58:13.476Z Has data issue: false hasContentIssue false
  • English
  • Français

An empirical test of new developments in coalition theory for the design of international environmental agreements

Published online by Cambridge University Press:  01 February 2009

MICHAEL FINUS ,
M. ELENA SÁIZ  and
ELIGIUS M.T. HENDRIX
MICHAEL FINUS*
Affiliation:
Department of Economics, University of Stirling, Stirling FK9 4LA, Scotland. Email: [email protected]
M. ELENA SÁIZ
Affiliation:
Operations Research and Logistics Group, Wageningen University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands
ELIGIUS M.T. HENDRIX
Affiliation:
Operations Research and Logistics Group, Wageningen University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands
*
*Corresponding author.
Get access Rights & Permissions [Opens in a new window]

Abstract

We consider new developments in coalition theory for the design of international environmental agreements (IEAs). Applying an empirical model on climate change that comprises benefit and cost estimates from abatement for 12 world regions, we analyze how the design of an agreement affects the success of self-enforcing IEAs. We analyze single versus multiple coalitions, open versus exclusive membership with majority and unanimity voting, and no transfers versus transfers with four different transfer schemes.

Type
Research Article
Information
Environment and Development Economics , Volume 14 , Issue 1: GAME THEORY, NATURAL RESOURCES AND THE ENVIRONMENT , February 2009 , pp. 117 - 137
Copyright
Copyright © Cambridge University Press 2008

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Altamirano-Cabrera, J.-C. and Finus, M. (2006), ‘Permit trading and stability of international climate agreements’, Journal of Applied Economics 9: 19–48.CrossRefGoogle Scholar
Altamirano-Cabrera, J.C., Finus, M., and Dellink, R. (2008), ‘Do abatement quotas lead to more successful climate coalitions?’, The Manchester School 76: 104–129.CrossRefGoogle Scholar
Babiker, M.H. et al. (2001), ‘The MIT Emissions Prediction and Policy Analysis (EPPA) model: revisions, sensitivities, and comparisons of results’, MIT Report No. 71, Cambridge, MA.Google Scholar
Barrett, S. (2001), ‘International cooperation for sale’, European Economic Review 45: 1835–1850.CrossRefGoogle Scholar
Binmore, K., Rubinstein, A., and Wolinsky, A. (1986), ‘The Nash bargaining solution in econonomic modelling’, RAND Journal of Economics 17: 176–188.Google Scholar
Bloch, F. (1996), ‘Sequential formation of coalitions in games with externalities and fixed payoff division’, Games and Economic Behavior 14: 90–123.Google Scholar
Bosello, F., Buchner, B., and Carraro, C. (2003), ‘Equity, development, and climate change control’, Journal of the European Economic Association 1: 601–611.Google Scholar
Botteon, M. and Carraro, C. (1997), ‘Burden-sharing and coalition stability in environmental negotiations with asymmetric countries’, in Carraro, C. (ed.), International Environmental Negotiations: Strategic Policy Issues, Cheltenham: Edward Elgar, ch. 3, pp. 26–55.Google Scholar
Buonanno, P., Carraro, C., and Galeotti, M. (2003), ‘Endogenous induced technical change and the cost of Kyoto’, Resource and Energy Economics 25: 11–34.CrossRefGoogle Scholar
Carraro, C. (2000), ‘Roads towards international environmental agreements’, in Siebert, H. (ed.), The Economics of International Environmental Problems, Tübingen: Mohr Siebeck, pp. 169–202.Google Scholar
Carraro, C., Eyckmans, J., and Finus, M. (2006), ‘Optimal transfers and participation decisions in international environmental agreements’, Review of International Organizations 1: 379–396.Google Scholar
Carraro, C. and Marchiori, C. (2003), ‘Stable coalitions’, in Carraro, C. (ed.), The Endogenous Formation of Economic Coalitions, Cheltenham: Edward Elgar, ch. 5, pp. 156–198.CrossRefGoogle Scholar
Carraro, C. and Siniscalco, D. (1993), ‘Strategies for the international protection of the environment’, Journal of Public Economics 52: 309–328.CrossRefGoogle Scholar
Chander, P. and Tulkens, H. (1997), ‘The core of an economy with multilateral environmental externalities’, International Journal of Game Theory 26: 379–401.CrossRefGoogle Scholar
Dellink, R.B. et al. (2004), ‘Empirical background paper of the STACO Model’, available on the STACO website http://www.enr.wur.nl/uk/staco, Wageningen University.Google Scholar
Dellink, R.B., Finus, M., and Olieman, N. (2008), ‘Coalition formation under uncertainty: the stability likelihood of an international climate agreement’, Journal of Environmental and Resource Economics 39: 357–377.CrossRefGoogle Scholar
Ellerman, A.D. and Decaux, A. (1998), ‘Analysis of post-Kyoto CO2 emissions trading using marginal abatement curves’, MIT Report No. 40, Cambridge, MA.Google Scholar
Eyckmans, J. and Finus, M. (2004), ‘An almost ideal sharing scheme for coalition games with externalities’, Working Paper No. 155.2004, Fondazione Eni Enrico Mattei, Italy.Google Scholar
Eyckmans, J. and Finus, M. (2006), ‘Coalition formation in a global warming game: how the design of protocols affects the success of environmental treaty-making’, Natural Resource Modeling 19: 323–358.CrossRefGoogle Scholar
Eyckmans, J. and Tulkens, H. (2003), ‘Simulating coalitionally stable burden sharing agreements for the climate change problem’, Resource and Energy Economics 25: 299–327.Google Scholar
Fankhauser, S. (1995), Climate Change: The Economics of the Greenhouse, London: Earthscan.Google Scholar
Finus, M. (2003), ‘Stability and design of international environmental agreements: the case of transboundary pollution’, in Folmer, H. and Tietenberg, T. (eds), International Yearbook of Environmental and Resource Economics, 2003/4, Cheltenham: Edward Elgar, ch. 3, pp. 82–158.Google Scholar
Finus, M., Altamirano-Cabrera, J.-C., and Ierland, E. van (2005), ‘The effect of membership rules and voting schemes on the success of international climate agreements’, Public Choice 125: 95–127.CrossRefGoogle Scholar
Finus, M. and Rundshagen, B. (2003), ‘Endogenous coalition formation in global pollution control: a partition function approach’, in Carraro, C. (ed.), Endogenous Formation of Economic Coalitions, Cheltenham: Edward Elgar, ch. 6, pp. 199–243.Google Scholar
Finus, M. and Rundshagen, B. (2006), ‘Participation in international environmental agreements: the role of timing and regulation’, Natural Resource Modeling 19: 165–200Google Scholar
Finus, M., Sáiz, M.E., and Hendrix, E.M.T. (2004), ‘An empirical test of new developments in coalition theory for the design of international environmental agreements’, Mansholt Working Paper No. 14, University of Wageningen. http://library.wur.nl/wasp/bestanden/LUWPUBRD_00337306_A502_001.pdfGoogle Scholar
Folmer, H., Mouche, P. van, and Ragland, S.E. (1993), ‘Interconnected games and international environmental problems’, Environmental and Resource Economics 3: 313–335.CrossRefGoogle Scholar
IPCC (2007), Climate change 2007: Mitigation. Contribution of Working Group III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change, Metz, B. et al. (eds), Cambridge and New York: Cambridge University Press.Google Scholar
Lange, A. and Vogt, C. (2003), ‘Cooperation in international environmental negotiations due to a preference for equity’, Journal of Public Economics 87: 2049–2067.Google Scholar
Nordhaus, W.D. and Boyer, J. (2000), Warming the World: Economic Models of Global Warming, Cambridge, MA: MIT Press.CrossRefGoogle Scholar
Peters, W. and Schuler, C. (2006), ‘International environmental agreements: can equity and fairness enlarge the size of the coalition?’ Paper presented at the ‘6th Meeting on Game Theory and Practice’, Zaragoza, Spain, 10–12 July 2006.Google Scholar
Rose, A. and Stevens, B. (1998), ‘A dynamic analysis of fairness in global warming policies: Kyoto, Buenos Aires, and beyond’, Journal of Applied Economics 1: 329–362.Google Scholar
Rose, A. et al. (1998), ‘International equity and differentiation in global warming policy’, Environmental and Resource Economics 12: 25–51.Google Scholar
Rubio, S.J. and Ulph, A. (2007), ‘An infinite-horizon model of dynamic membership of international environmental agreements’, Journal of Environmental Economics and Management 54: 296–310.Google Scholar
Tol, R.S.J. (1997), ‘A decision-analytic treatise of the enhanced greenhouse effect’, Ph.D. Thesis, Vrije Universiteit, Amsterdam.Google Scholar
Tol, R.S.J. (2005), ‘The marginal damage costs of carbon dioxide emissions: an assessment of the uncertainties’, Energy Policy 33: 2064–2074.Google Scholar
Weikard, H.-P. (2005), ‘Cartel stability under optimal sharing rule’, Working Paper 77.2005, Fondazione Eni Enrico Mattei, Italy.Google Scholar
Weikard, H.-P., Finus, M., and Altamirano-Cabrera, J. C. (2006), ‘The impact of surplus sharing on the stability of international climate coalitions’, Oxford Economic Papers 58: 209–232.Google Scholar