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Equity, Heterogeneity and International Environmental Agreements

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  • Kolstad Charles D

    (University of California, Santa Barbara)

Abstract

Much of the literature on international environmental agreements (IEA) considers the case of identical countries. There is a much smaller literature concerning the more complex but more realistic case of country heterogeneity. This paper involves modifying the standard static homogeneous country model of international environmental agreements. In particular, we consider two types of countries, differing in size as well as in marginal damage from pollution. Although the IEA does not have a unique size in this case, we do introduce two equilibrium refinements and explore the implications for coalition size. The two refinements include one based on efficiency and one based on equity.

Suggested Citation

  • Kolstad Charles D, 2010. "Equity, Heterogeneity and International Environmental Agreements," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(2), pages 1-17, October.
    • Handle: RePEc:bpj:bejeap:v:10:y:2010:i:2:n:3
    DOI: 10.2202/1935-1682.2593
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    Cited by:

    1. Effrosyni Diamantoudi & Eftichios S. Sartzetakis, 2018. "International Environmental Agreements—The Role of Foresight," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(1), pages 241-257, September.
    2. Charles F. Mason, 2022. "Cooperation in Dynamic Games with Asymmetric Players: The Role of Social Preferences," Dynamic Games and Applications, Springer, vol. 12(3), pages 977-995, September.
    3. Michael Finus & Matthew McGinty, 2015. "The Anti-Paradox of Cooperation: Diversity Pays!," Department of Economics Working Papers 40/15, University of Bath, Department of Economics.
    4. Charles Mason, 2019. "On Climate Agreements with Asymmetric Countries: Theory and Experimental Results," Working Papers 2019.22, FAERE - French Association of Environmental and Resource Economists.
    5. Robert C. Schmidt & Moritz Drupp & Frikk Nesje & Hendrik Hoegen, 2022. "Testing the free-rider hypothesis in climate policy," Papers 2211.06209, arXiv.org.
    6. Effrosyni Diamantoudi & Eftichios Sartzetakis, 2015. "International environmental agreements: coordinated action under foresight," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 59(3), pages 527-546, August.
    7. Van Long, Ngo, 2016. "The Impacts of Other-Regarding Preferences and Ethical Choice on Environmental Outcomes: A Review of the Literature," Strategic Behavior and the Environment, now publishers, vol. 6(1-2), pages 1-35, December.
    8. Robert Schmidt & Roland Strausz, 2015. "On the Timing of Climate Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 521-547, November.
    9. Doruk Iris & Alessandro Tavoni, 2016. "Tipping Points and Loss Aversion in International Environmental Agreements," Working Papers 1603, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).
    10. Gary D. Libecap, 2014. "Addressing Global Environmental Externalities: Transaction Costs Considerations," Journal of Economic Literature, American Economic Association, vol. 52(2), pages 424-479, June.
    11. Wang, Yiming, 2013. "A time-consistent model for cooperation in international pollution control," Economic Modelling, Elsevier, vol. 33(C), pages 500-506.
    12. Battisti, Michele & Delgado, Michael S. & Parmeter, Christopher F., 2015. "Evolution of the global distribution of carbon dioxide: A finite mixture analysis," Resource and Energy Economics, Elsevier, vol. 42(C), pages 31-52.
    13. repec:hum:wpaper:sfb649dp2014-044 is not listed on IDEAS
    14. Gary D. Libecap, 2013. "Addressing Global Environmental Externalities: Transaction Costs Considerations," NBER Working Papers 19501, National Bureau of Economic Research, Inc.
    15. Brian Chi-ang Lin & Siqi Zheng & Doruk İriş, 2016. "Economic Targets And Loss-Aversion In International Environmental Cooperation," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 624-648, July.
    16. 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.

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