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Do environmental treaties matter?

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  • William Gissy

Abstract

This paper examines a two-country model where each country produces a negative global externality. The results indicate that a locally oriented country has an incentive to negotiate a treaty with the other, however, the outcome is not a globally optimal one. Additionally, this paper demonstrates that when a locally oriented country operates with complete ignorance regarding the other country's intentions, a result approximating global optimum occurs. Copyright International Atlantic Economic Society 1998

Suggested Citation

  • William Gissy, 1998. "Do environmental treaties matter?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 4(4), pages 411-417, November.
    • Handle: RePEc:kap:iaecre:v:4:y:1998:i:4:p:411-417:10.1007/bf02295694
    DOI: 10.1007/BF02295694
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    References listed on IDEAS

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    6. William D. Nordhaus, 1993. "Reflections on the Economics of Climate Change," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 11-25, Fall.
    7. Hahn, Robert W & Stavins, Robert N, 1992. "Economic Incentives for Environmental Protection: Integrating Theory and Practice," American Economic Review, American Economic Association, vol. 82(2), pages 464-468, May.
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