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Minimum Participation Rules with Heterogeneous Countries

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  • Hans-Peter Weikard
  • Leo Wangler
  • Andreas Freytag

Abstract

Almost all international environmental agreements include a minimum participation rule. Under such rule an agreement becomes legally binding if and only if a certain threshold in terms of membership or contribution is reached. We analyse a cartel game with open membership and heterogeneous countries to study the endogenous choice of a minimum participation rule and its role for the success of international environmental agreements. While a full participation requirement would be efficient, we find (sequential) equilibria with a minimum participation rule that allows at least one country to free ride. Free riding may occur if a country can exploit some bargaining power in the negotiation of the minimum participation rule. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Hans-Peter Weikard & Leo Wangler & Andreas Freytag, 2015. "Minimum Participation Rules with Heterogeneous Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 711-727, December.
    • Handle: RePEc:kap:enreec:v:62:y:2015:i:4:p:711-727
    DOI: 10.1007/s10640-014-9861-1
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    2. Alessandro Tavoni & Ralph Winkler, 2021. "Domestic Pressure and International Climate Cooperation," Annual Review of Resource Economics, Annual Reviews, vol. 13(1), pages 225-243, October.
    3. Köke, Sonja & Lange, Andreas, 2017. "Negotiating environmental agreements under ratification constraints," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 90-106.
    4. Stefano Carattini & Simon Levin & Alessandro Tavoni, 2019. "Cooperation in the Climate Commons," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(2), pages 227-247.
    5. Leo Wangler & Juan-Carlos Altamirano-Cabrera & Hans-Peter Weikard, 2013. "The political economy of international environmental agreements: a survey," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 13(3), pages 387-403, September.
    6. Matteo Zavalloni & Meri Raggi & Davide Viaggi, 2019. "Agri-environmental Policies and Public Goods: An Assessment of Coalition Incentives and Minimum Participation Rules," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(4), pages 1023-1040, April.
    7. 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.
    8. Marchiori, Carmen & Dietz, Simon & Tavoni, Alessandro, 2017. "Domestic politics and the formation of international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 115-131.
    9. 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.
    10. Köke, Sonja & Lange, Andreas, 2013. "Negotiating Environmental Agreements under Ratification Uncertainty," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79952, Verein für Socialpolitik / German Economic Association.
    11. Michael Finus & Bianca Rundshagen, 2015. "Game Theory and Environmental and Resource Economics–In Honour of Alfred Endres," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 657-664, December.
    12. Anna A. Klis, 2019. "Identity and equal treatment in negative externality agreements," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 19(6), pages 615-630, December.
    13. 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.
    14. Martin Kesternich, 2016. "Minimum participation rules in international environmental agreements: empirical evidence from a survey among delegates in international climate negotiations," Applied Economics, Taylor & Francis Journals, vol. 48(12), pages 1047-1065, March.
    15. Galioto, Francesco & Musotti, Francesco, 2023. "The governance of agricultural lands in marginal areas: A conceptual framework," Ecological Economics, Elsevier, vol. 212(C).
    16. Kai Lessmann & Robert Marschinski & Michael Finus & Ulrike Kornek & Ottmar Edenhofer, 2014. "Emissions Trading with Non-signatories in a Climate Agreement—an Analysis of Coalition Stability," Manchester School, University of Manchester, vol. 82, pages 82-109, December.
    17. David McEvoy & Todd Cherry & John Stranlund, 2015. "Endogenous Minimum Participation in International Environmental Agreements: An Experimental Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 729-744, December.
    18. Pierre Courtois & Guillaume Haeringer, 2012. "Environmental cooperation: ratifying second-best agreements," Public Choice, Springer, vol. 151(3), pages 565-584, June.
    19. Breton, Michèle & Sbragia, Lucia, 2023. "Self-image and the stability of international environmental agreements," Ecological Economics, Elsevier, vol. 211(C).
    20. Ansink, Erik & Bouma, Jetske, 2013. "Effective support for community resource management," Forest Policy and Economics, Elsevier, vol. 37(C), pages 94-103.
    21. Rob Dellink, 2011. "Drivers Of Stability Of Climate Coalitions In The Staco Model," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 105-128.

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    More about this item

    Keywords

    Minimum participation rules; International environmental agreements; Coalition formation; Transboundary pollution; Environmental policy coordination; D62; H41; D02; C72;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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