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Negotiating environmental agreements under ratification constraints

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  • Köke, Sonja
  • Lange, Andreas

Abstract

We analyze the impact of ratification constraints on the optimal terms of international environmental agreements (IEAs). For this, we combine the literature on IEAs with the public choice literature on two-level games. By also incorporating uncertain preferences of the pivotal voter in the ratification stage, we make several important contributions: (i) we contribute to a more realistic modeling of the temporal structure of international agreements, (ii) we show a surprising, yet intuitive non-monotonic relationship between the optimal commitment level and the variance of ratification decisions, (iii) we identify reasons to expect a larger number of countries to join international negotiations than predicted by most of the coalition formation literature based on a representative agent model. Ratification constraints thereby can improve the welfare gains from stable international agreements.

Suggested Citation

  • Köke, Sonja & Lange, Andreas, 2017. "Negotiating environmental agreements under ratification constraints," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 90-106.
    • Handle: RePEc:eee:jeeman:v:83:y:2017:i:c:p:90-106
    DOI: 10.1016/j.jeem.2016.12.007
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    Cited by:

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    3. Calzolari, Giacomo & Casari, Marco & Ghidoni, Riccardo, 2018. "Carbon is forever: A climate change experiment on cooperation," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 169-184.
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    5. Colombo, Luca & Labrecciosa, Paola & Van Long, Ngo, 2022. "A dynamic analysis of international environmental agreements under partial cooperation," European Economic Review, Elsevier, vol. 143(C).
    6. Mao, Liang, 2020. "Designing international environmental agreements under participation uncertainty," Resource and Energy Economics, Elsevier, vol. 61(C).
    7. Sarah Spycher, 2024. "Elections and Political Polarisation: Challenges for Environmental Agreements," Working Papers wp1196, Dipartimento Scienze Economiche, Universita' di Bologna.
    8. Thomas Eichner & Rüdiger Pethig, 2021. "Climate Policy and Moral Consumers," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(4), pages 1190-1226, October.
    9. Mao, Liang, 2017. "A Note on Stable Cartels," MPRA Paper 83982, University Library of Munich, Germany, revised 18 Jan 2018.
    10. Mao, Liang, 2017. "Designing International Environmental Agreements under Participation Uncertainty," MPRA Paper 79145, University Library of Munich, Germany.
    11. Mao, Liang, 2017. "Designing International Environmental Agreements under Participation Uncertainty," MPRA Paper 86248, University Library of Munich, Germany.
    12. Spycher, Sarah & Winkler, Ralph, 2022. "Strategic delegation in the formation of modest international environmental agreements," European Economic Review, Elsevier, vol. 141(C).
    13. 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.

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    More about this item

    Keywords

    International environmental agreement; Coalition formation; Ratification; Two-level games; Uncertainty; Minimum participation threshold;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • P17 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Performance and Prospects

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