1932
0

Annual Review of Resource Economics

Volume 7, 2015

International Environmental Agreements

Abstract

The regulation of environmental externalities at the global level requires international agreements between sovereign states. Game theory provides an appropriate theoretical tool for analysis. However, game theory can result in a wide range of outcomes, and therefore it is important to discuss the assumptions and mechanisms of the different approaches and to relate these with what is observed in practice. The basic picture is not optimistic: If there are large gains of cooperation, the stable coalition is small. This grim picture challenges the perspective and design of international agreements. This article discusses and compares the different approaches: noncooperative, cooperative, dynamic, and evolutionary. Asymmetries and the options for side payments are considered. At the end, some more optimistic ways forward are presented.

Keyword(s): cooperative, dynamics, games, global pollution, noncooperative
Loading

Article metrics loading...

/content/journals/10.1146/annurev-resource-100814-124943
2015-10-05
2025-06-20
Loading full text...

Full text loading...

/deliver/fulltext/resource/7/1/annurev-resource-100814-124943.html?itemId=/content/journals/10.1146/annurev-resource-100814-124943&mimeType=html&fmt=ahah

Literature Cited

  1. d’Aspremont C, Jacquemin A, Gabszewicz J, Weymark J. 1983. On the stability of collusive price leadership. Can. J. Econ. 16:17–25 [Google Scholar]
  2. Bargiacchi R. 2006. Modelling and testing behavior in applications to climate change. PhD Thesis, Tilburg Univ.
  3. Barrett S. 1994. Self-enforcing international environmental agreements. Oxf. Econ. Pap. 46:878–94 [Google Scholar]
  4. Barrett S. 2003. Environment and Statecraft: The Strategy of Environmental Treaty-Making Oxford, UK: Oxford Univ. Press [Google Scholar]
  5. Barrett S. 2006. Climate treaties and “breakthrough” technologies. Am. Econ. Rev. Pap. Proc 96:22–25 [Google Scholar]
  6. Barrett S. 2013. Climate treaties and approaching catastrophes. J. Environ. Econ. Manag. 66:235–50 [Google Scholar]
  7. Barrett S, Dannenberg A. 2012. Climate negotiations under scientific uncertainty. PNAS 109:17372–76 [Google Scholar]
  8. Botteon M, Carraro C. 1997. Burden sharing and coalitional stability in environmental negotiations with asymmetric countries. International Environmental Negotiations: Strategic Policy Issues Carraro C. 26–55 Cheltenham, UK: Edward Elgar [Google Scholar]
  9. Boyd R, Richerson P. 1988. The evolution of reciprocity in sizable groups. J. Theor. Biol. 132:337–56 [Google Scholar]
  10. Breton M, Sbragia L, Zaccour G. 2010. A dynamic model for international agreements. Environ. Resour. Econ. 45:25–48 [Google Scholar]
  11. Carraro C, Siniscalco D. 1993. Strategies for the international protection of the environment. J. Public Econ. 52:309–28 [Google Scholar]
  12. Cesar H, de Zeeuw A. 1996. Issue linkage in global environmental problems. Economic Policy for the Environment and Natural Resources Xepapadeas A. 158–73 Cheltenham, UK: Edward Elgar [Google Scholar]
  13. Chander P, Tulkens H. 1995. A core-theoretic solution for the design of cooperative agreements on transfrontier pollution. Int. Tax Public Finance 2:279–93 [Google Scholar]
  14. Chander P, Tulkens H. 1997. The core of an economy with multilateral environmental externalities. Int. J. Game Theory 26:379–401 [Google Scholar]
  15. Chwe M. 1994. Farsighted coalitional stability. J. Econ. Theory 63:299–325 [Google Scholar]
  16. Diamantoudi E, Sartzetakis E. 2002. International environmental agreements—the role of foresight. Work. Pap., Dep. Econ., Univ. Aarhus
  17. Finus M. 2003. Stability and design of international environmental agreements: the case of transboundary pollution. The International Yearbook of Environmental and Resource Economics 2003/2004 Folmer H, Tietenberg T. 82–158 Cheltenham, UK: Edward Elgar [Google Scholar]
  18. Friedman J. 1986. Game Theory with Applications to Economics Oxford, UK: Oxford Univ. Press [Google Scholar]
  19. Fuentes-Albero C, Rubio S. 2010. Can international environmental cooperation be bought?. Eur. J. Oper. Res. 202:255–64 [Google Scholar]
  20. Germain M, Toint P, Tulkens H, de Zeeuw A. 2003. Transfers to sustain dynamic core-theoretic cooperation in international stock pollutant control. J. Econ. Dyn. Control 28:79–99 [Google Scholar]
  21. Hoel M. 1992. International environmental conventions: the case of uniform reductions of emissions. Environ. Resour. Econ. 2:141–59 [Google Scholar]
  22. Hoel M, de Zeeuw A. 2014. Technology agreements with heterogeneous countries. Towards a New Climate Agreement: Conflict, Resolution and Governance Cherry T, Hovi J, McEvoy D. 199–219 London/New York: Routledge [Google Scholar]
  23. Keohane R. 1984. After Hegemony: Cooperation and Discord in the World Political Economy Princeton, NJ: Princeton Univ. Press [Google Scholar]
  24. Kneese A. 1988. Environmental stress and political conflicts: salinity in the Colorado River. Work. Pap., Resour. Future
  25. Lenton T, Held H, Kriegler E, Hall J, Lucht W et al. 2008. Tipping elements in the earth’s climate system. PNAS 105:1786–93 [Google Scholar]
  26. Mäler K-G. 1989. The acid rain game. Valuation Methods and Policy Making in Environmental Economics Folmer H, van Ierland E. 231–52 Amsterdam: Elsevier [Google Scholar]
  27. McGinty M. 2007. International environmental agreements among asymmetric nations. Oxf. Econ. Pap. 59:45–62 [Google Scholar]
  28. McGinty M. 2010. International environmental agreements as evolutionary games. Environ. Resour. Econ. 45:251–69 [Google Scholar]
  29. Nowak M, Sigmund K. 2006. Five rules for the evolution of cooperation. Science 314:1560–63 [Google Scholar]
  30. Ochea M, de Zeeuw A. 2015. Evolution of reciprocity in asymmetric international environmental negotiations. Environ. Resour. Econ In press [Google Scholar]
  31. Pavlova Y, de Zeeuw A. 2013. Asymmetries in international environmental agreements. Environ. Dev. Econ. 18:51–68 [Google Scholar]
  32. Pintissalgo P, Finus M, Lindroos M, Munro M. 2010. Stability and success of regional fisheries management organizations. Environ. Resour. Econ. 46:377–402 [Google Scholar]
  33. van der Ploeg F, de Zeeuw A. 1992. International aspects of pollution control. Environ. Resour. Econ. 2:117–39 [Google Scholar]
  34. Raiffa H. 1982. The Art and Science of Negotiation Cambridge, MA: Harvard Univ. Press [Google Scholar]
  35. Sebenius J. 1983. Negotiation arithmetic: adding and subtracting issues and parties. Int. Organ. 37:281–316 [Google Scholar]
  36. Taylor M. 1976. Anarchy and Cooperation London: John Wiley & Sons [Google Scholar]
  37. de Zeeuw A. 2008. Dynamic effects on the stability of international environmental agreements. J. Environ. Econ. Manag. 55:163–74 [Google Scholar]
/content/journals/10.1146/annurev-resource-100814-124943
Loading

Most Cited Most Cited RSS feed

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error