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Simulating the impact of heterogeneity on stability and effectiveness of international environmental agreements

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  • Bakalova, Irina
  • Eyckmans, Johan

Abstract

This paper analyses in a systematic way the effect of benefit and cost parameter heterogeneity on the stability and effectiveness of International Environmental Agreements. Compared to existing literature, we consider a more general form of heterogeneity, different functional forms and alternative collective decision making processes in coalitions with and without transfers. Using systematic numerical simulations and novel visualization techniques, we show that transfers are crucial to overcome heterogeneity both in terms of stability and effectiveness. Without, or with limited transfers heterogeneous coalitions are often unstable and ineffective. More research on less than ideal transfer schemes and collective decision making rules is necessary to bridge the gap between theoretical models and the reality of international negotiations on transboundary pollution problems.

Suggested Citation

  • Bakalova, Irina & Eyckmans, Johan, 2019. "Simulating the impact of heterogeneity on stability and effectiveness of international environmental agreements," European Journal of Operational Research, Elsevier, vol. 277(3), pages 1151-1162.
  • Handle: RePEc:eee:ejores:v:277:y:2019:i:3:p:1151-1162
    DOI: 10.1016/j.ejor.2019.03.028
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    Cited by:

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    2. Rafat Beigpoor Shahrivar & Duesterhoeft, Ilka & Rogna, Marco & Vogt, Carla, 2023. "A mechanism of proportional contributions for public good games," Ruhr Economic Papers 990, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Mark Schopf, 2024. "Self-Enforcing International Environmental Agreements and Altruistic Preferences," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(9), pages 2309-2359, September.
    4. 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.
    5. Francois Bareille & Matteo Zavalloni & Meri Raggi & Davide Viaggi, 2021. "Cooperative Management of Ecosystem Services: Coalition Formation, Landscape Structure and Policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(2), pages 323-356, June.
    6. Natalia Escobar-Pemberthy & Maria Ivanova, 2020. "Implementation of Multilateral Environmental Agreements: Rationale and Design of the Environmental Conventions Index," Sustainability, MDPI, vol. 12(17), pages 1-23, August.
    7. Li, Liming & Chen, Weidong, 2021. "The impact of subsidies in a transboundary pollution game with myopic players," Omega, Elsevier, vol. 103(C).
    8. Matthew McGinty, 2020. "Leadership and Free-Riding: Decomposing and Explaining the Paradox of Cooperation in International Environmental Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(2), pages 449-474, October.
    9. Eichner, Thomas & Kollenbach, Gilbert, 2022. "Environmental agreements, research and technological spillovers," European Journal of Operational Research, Elsevier, vol. 300(1), pages 366-377.

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