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International Environmental Agreements: Doomed to Fail or Destined to Succeed? A Review of the Literature

Author

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  • Marrouch, Walid
  • Ray Chaudhuri, Amrita
Abstract
We survey the economics literature on International Environmental Agreements (IEAs). We classify the extant literature into the following categories: pure IEA games without linkages, which focus on a single externality stemming from global pollution; IEA games with side payments and issue linkages, which consider carrot or stick mechanisms to lure cooperators or punish defectors; political economy models, which examine intra- and inter-governmental issues that affect international negotiations; design issues of IEAs; behavioral factors, which affect the willingness of countries to cooperate; and additional externalities resulting from open economy issues and adaptation, which interact with the global pollution externality and affect the free-riding incentives of countries. Based on this classification of the literature, we attempt to identify conditions under which an international environmental agreement would be sustainable and effective.

Suggested Citation

  • Marrouch, Walid & Ray Chaudhuri, Amrita, 2016. "International Environmental Agreements: Doomed to Fail or Destined to Succeed? A Review of the Literature," International Review of Environmental and Resource Economics, now publishers, vol. 9(3-4), pages 245-319, September.
    • Handle: RePEc:now:jirere:101.00000078
    DOI: 10.1561/101.00000078
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    Citations

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    Cited by:

    1. Hagen, Achim & Schneider, Jan, 2021. "Trade sanctions and the stability of climate coalitions," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    2. Achim Hagen & Klaus Eisenack, 2019. "Climate Clubs Versus Single Coalitions: The Ambition Of International Environmental Agreements," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 10(03), pages 1-19, August.
    3. Toke S. Aidt & Facundo Albornoz & Esther Hauk, 2019. "Foreign in influence and domestic policy: A survey," Cambridge Working Papers in Economics 1928, Faculty of Economics, University of Cambridge.
    4. Soham Baksi & Amrita Ray Chaudhuri, 2020. "Imperfect Competition, Border Carbon Adjustments, and Stability of a Global Climate Agreement," Departmental Working Papers 2020-03, The University of Winnipeg, Department of Economics.
    5. Nkuiya, Bruno, 2020. "Stability of international environmental agreements under isoelastic utility," Resource and Energy Economics, Elsevier, vol. 59(C).
    6. Finus, Michael & Furini, Francesco & Rohrer, Anna Viktoria, 2024. "The Stackelberg vs. Nash-Cournot Folk-theorem in international environmental agreements," Economics Letters, Elsevier, vol. 234(C).
    7. Nils Johansson, 2021. "Circular Agreements—Exploring the Role of Agreements and Deals as a Political Tool for a Circular Economy," Circular Economy and Sustainability, Springer, vol. 1(2), pages 499-505, September.
    8. Michael Finus & Francesco Furini & Anna Viktoria Rohrer, 2021. "International Environmental Agreements and the Paradox of Cooperation: Revisiting and Generalizing Some Previous Results," Graz Economics Papers 2021-05, University of Graz, Department of Economics.
    9. Toke S. Aidt & Facundo Albornoz & Esther Hauk, 2021. "Foreign Influence and Domestic Policy," Journal of Economic Literature, American Economic Association, vol. 59(2), pages 426-487, June.
    10. Miguel Borrero & Santiago J. Rubio, 2022. "An adaptation-mitigation game: does adaptation promote participation in international environmental agreements?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 22(3), pages 439-479, September.
    11. Thomas Kuhn & Radomir Pestow & Anja Zenker, 2022. "Formation of Climate Coalitions and Preferential Free Trade - The Case for Participation Linkage," Chemnitz Economic Papers 057, Department of Economics, Chemnitz University of Technology, revised Nov 2022.
    12. Hagen, Achim & Schopf, Mark, 2024. "Political influence on international climate agreements with border carbon adjustment," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    13. Eleftherios Filippiadis & Anastasia Litina, 2022. "A dynamic analysis of the income–pollution relationship in a two-country setting," Economic Change and Restructuring, Springer, vol. 55(2), pages 775-801, May.
    14. Meléndez-Jiménez, Miguel A. & Polanski, Arnold, 2020. "Dirty neighbors — Pollution in an interlinked world," Energy Economics, Elsevier, vol. 86(C).
    15. Achim Hagen & Jan Schneider, 2017. "Boon or Bane? Trade Sanctions and the Stability of International Environmental Agreements," Working Papers V-403-17, University of Oldenburg, Department of Economics, revised Sep 2017.
    16. Rohrer, Anna Viktoria & Rubio, Santiago J., 2024. "The strategic role of adaptation in international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 124(C).
    17. Achim Hagen & Pierre von Mouche & Hans-Peter Weikard, 2020. "The Two-Stage Game Approach to Coalition Formation: Where We Stand and Ways to Go," Games, MDPI, vol. 11(1), pages 1-31, January.
    18. Nahid Masoudi, 2022. "Designed to be stable: international environmental agreements revisited," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 22(4), pages 659-672, December.
    19. Tiziano Distefano & Simone D'Alessandro, 2017. "An Evolutionary approach to International Environmental Agreements," SEEDS Working Papers 0517, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Sep 2017.
    20. Soham Baksi & Amrita Ray Chaudhuri, 2016. "International Trade and Environmental Cooperation among Heterogeneous Countries," Departmental Working Papers 2016-03, The University of Winnipeg, Department of Economics.
    21. Giorgos Stamatopoulos, 2021. "On the core of economies with multilateral environmental externalities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(1), pages 158-171, February.
    22. Matteo Roggero & Leonhard Kähler & Achim Hagen, 2019. "Strategic cooperation for transnational adaptation: lessons from the economics of climate change mitigation," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 19(4), pages 395-410, October.
    23. Masoudi, Nahid & Zaccour, Georges, 2017. "Adapting to climate change: Is cooperation good for the environment?," Economics Letters, Elsevier, vol. 153(C), pages 1-5.
    24. Tiziano Distefano & Simone D’Alessandro, 2021. "A new two-nested-game approach: linking micro- and macro-scales in international environmental agreements," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 21(3), pages 493-516, September.

    More about this item

    Keywords

    International environmental agreements; coalition formation; transboundary pollution; climate change;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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