New Roads to International Environmental Agreements: The Case of Global Warming
44 Pages Posted: 22 Nov 2003
Date Written: September 2003
We analyze with an integrated assessment model of climate change the formation of international environmental agreements (IEAs) by applying the widely used concept of internal & external stability and several modifications of it. We relax the assumptions of a single agreement and open membership rule. It turns out that regional agreements are superior to a single agreement and exclusive is superior to open membership in welfare and ecological terms. Moreover, we show the importance of transfers for successful treaty-making. We relate our results to the design of current and past IEAs as well as to other issues of international policy coordination.
Keywords: Design of climate treaty protocol, Coalition formation, Non-cooperative game theory
JEL Classification: C68, C72, H41, Q25
Suggested Citation: Suggested Citation