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An Empirical Assessment of Measures to Enhance the Success of Global Climate Treaties

Author

Listed:
  • Johan Eyckmans

    (EHSAL - Europese hogeschool Brussel; K.U.Leuven-Center for Economic Studies)

  • Michael Finus

    (Department of Economics, University of Hagen,)

Abstract
We analyze important forces that hamper the formation of successful self-enforcing agreements to mitigate global warming. The analysis combines two modules: a) a computable general equilibrium model that captures the feedback between the economy, environmental damages and the climate system and b) a game theoretic model that determines stable coalitions in the presence of free-riding incentives. We consider two types of measures to enhance the success of international environmental treaty-making: a) transfers, aiming at balancing asymmetric gains from cooperation; b) institutional changes, aiming at making it more difficult to upset stability of a treaty. We find that institutional changes may be as important as transfers and should therefore receive more attention in future international negotiations.

Suggested Citation

  • Johan Eyckmans & Michael Finus, 2004. "An Empirical Assessment of Measures to Enhance the Success of Global Climate Treaties," Energy, Transport and Environment Working Papers Series ete0406, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
    • Handle: RePEc:ete:etewps:ete0406
    as

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    File URL: https://lirias.kuleuven.be/bitstream/123456789/119355/1/ETE-WP-2004-06.pdf
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    References listed on IDEAS

    as
    1. Parkash Chander & Henry Tulkens, 2006. "The Core of an Economy with Multilateral Environmental Externalities," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 153-175, Springer.
    2. Michael Finus & Alejandro Caparrós (ed.), 2015. "Game Theory and International Environmental Cooperation," Books, Edward Elgar Publishing, number 15345.
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    6. Johan Eyckmans & Henry Tulkens, 2006. "Simulating Coalitionally Stable Burden Sharing Agreements for the Climate Change Problem," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 218-249, Springer.
    7. Burtraw, Dallas & Krupnick, Alan & Austin, David & Farrell, Deirdre & Mansur, Erin, 1997. "The Costs and Benefits of Reducing Acid Rain," RFF Working Paper Series dp-97-31-rev, Resources for the Future.
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    14. GERMAIN, Marc & TOINT, Philippe & TULKENS, Henry, 1998. "Financial transfers to sustain cooperative international optimality in stock pollutant abatement," LIDAM Reprints CORE 1369, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Cited by:

    1. Da Zhang & Marco Springmann & Valerie J. Karplus, 2016. "Equity and emissions trading in China," Climatic Change, Springer, vol. 134(1), pages 131-146, January.
    2. Carlo Carraro & Johan Eyckmans & Michael Finus, 2006. "Optimal transfers and participation decisions in international environmental agreements," The Review of International Organizations, Springer, vol. 1(4), pages 379-396, December.
    3. Da Zhang & Marco Springmann & Valerie Karplus, 2016. "Equity and emissions trading in China," Climatic Change, Springer, vol. 134(1), pages 131-146, January.

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    More about this item

    Keywords

    design of climate treaty protocol; coalition formation; non-cooperative game theory; integrated assessment model;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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