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Enforcing compliance with international environmental agreements using a deposit-refund system

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  • David McEvoy

Abstract

Whether nations are able to cooperatively manage shared resources through international environmental agreements (IEAs) depends on whether compliance with voluntary commitments can be enforced. Given that nations are sovereign enforcing compliance with IEAs cannot rely on the presence of a strong sanctioning body. Nonetheless, enforcement provisions must be effective in the sense that they will deter non-compliance and credible in the sense that they will actually be imposed. In this paper, we address the problem of enforcing compliance with IEAs by examining one promising mechanism—a deposit-refund system—that exhibits the necessary features for effective enforcement. We analyze a simple model to demonstrate the desirable properties of the mechanism and then consider the effects of imperfect monitoring, uncertainty, partial participation and reputation on the effectiveness of a deposit-refund system. Copyright Springer Science+Business Media Dordrecht 2013

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  • David McEvoy, 2013. "Enforcing compliance with international environmental agreements using a deposit-refund system," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 13(4), pages 481-496, November.
    • Handle: RePEc:spr:ieaple:v:13:y:2013:i:4:p:481-496
    DOI: 10.1007/s10784-013-9209-2
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    2. Weidong Chen & Wenjuan Zang & Wanlong Fan & Guanyi Yu, 2018. "Optimize emission reduction commitments for international environmental agreements," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(8), pages 1367-1389, December.
    3. Jon Hovi & Hugh Ward & Frank Grundig, 2015. "Hope or Despair? Formal Models of Climate Cooperation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 665-688, December.
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    5. McEvoy, David M. & McGinty, Matthew, 2023. "The problem of financing global public goods," European Economic Review, Elsevier, vol. 153(C).
    6. Gersbach, Hans & Hummel, Noemi, 2016. "A development-compatible refunding scheme for a climate treaty," Resource and Energy Economics, Elsevier, vol. 44(C), pages 139-168.

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