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On the Design of International Environmental Agreements for Identical and Heterogeneous Developing Countries

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  • Batabyal, Amitrajeet A

Abstract

I analyze the problem faced by an imperfectly informed supra-national governmental authority (SNGA) that wishes to design an International Environmental Agreement (IEA). The SNGA cannot contract directly with polluting firms in the developing countries (DCs), and it must deal with such firms through their governments. I find that the transfers necessary to induce optimal behavior by governments and firms are sensitive to the timing of the underlying game and to the existence of collusion. This analysis suggests that IEAs are not doomed due to a monitoring and enforcement problem arising from national sovereignty. However, the success of IEAs is contingent on the funds available for environmental protection. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Batabyal, Amitrajeet A, 2000. "On the Design of International Environmental Agreements for Identical and Heterogeneous Developing Countries," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 560-583, July.
    • Handle: RePEc:oup:oxecpp:v:52:y:2000:i:3:p:560-83
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    Cited by:

    1. Michael Jakob & Kai Lessmann, 2012. "Signaling in international environmental agreements: the case of early and delayed action," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 12(4), pages 309-325, November.
    2. Fuhai Hong, 2014. "Technology transfer with transboundary pollution: A signalling approach," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(3), pages 953-980, August.
    3. Porteiro, Nicolas, 2008. "Pressure groups and experts in environmental regulation," Journal of Economic Behavior & Organization, Elsevier, vol. 65(1), pages 156-175, January.
    4. Santiago J. Rubio, 2001. "International Cooperation In Pollution Control," Working Papers. Serie AD 2001-21, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    5. Hassan Benchekroun & Ngo Van Long, 2012. "Collaborative Environmental Management: A Review Of The Literature," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 14(04), pages 1-22.
    6. Amitrajeet A. Batabyal & Henk Folmer, 2020. "Spatial economic aspects of climate change," Spatial Economic Analysis, Taylor & Francis Journals, vol. 15(3), pages 209-218, July.
    7. Beladi, Hamid & Oladi, Reza, 2011. "Does trade liberalization increase global pollution?," Resource and Energy Economics, Elsevier, vol. 33(1), pages 172-178, January.

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