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Drivers Of Stability Of Climate Coalitions In The Staco Model

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  • ROB DELLINK

    (Environmental Economics and Natural Resources Group, Wageningen University, Hollandseweg 1, 6706 KN Wageningen, The Netherlands)

Abstract

This paper investigates which drivers affect the formation and stability of international climate agreements (ICAs). The applied model STACO is used to project costs and benefits of an international agreement on climate change mitigation activities. The simulation results show that an incentive-based permit allocation scheme is an essential driver in stabilizing larger coalitions. Regional damage shares turn out to be another driver of coalition formation but global damages do not seem to be, thus illustrating that international coalition formation is a matter ofrelativecosts and benefits across regions. No allocation scheme can, however, assure the stability of a global agreement due to huge free-rider incentives. This requires alternative rules, such as a condition that some players are essential in a coalition, or accepting a small loss from cooperation.

Suggested Citation

  • 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.
    • Handle: RePEc:wsi:ccexxx:v:02:y:2011:i:02:n:s2010007811000231
    DOI: 10.1142/S2010007811000231
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    References listed on IDEAS

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    1. 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.
    2. Hans-Peter Weikard & Michael Finus & Juan-Carlos Altamirano-Cabrera, 2006. "The impact of surplus sharing on the stability of international climate agreements," Oxford Economic Papers, Oxford University Press, vol. 58(2), pages 209-232, April.
    3. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-894, Supplemen.
    4. Matthew McGinty, 2007. "International environmental agreements among asymmetric nations," Oxford Economic Papers, Oxford University Press, vol. 59(1), pages 45-62, January.
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    Cited by:

    1. Jan Kersting & Vicki Duscha & Matthias Weitzel, 2017. "Cooperation on Climate Change under Economic Linkages: How the Inclusion of Macroeconomic Effects Affects Stability of a Global Climate Coalition," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    2. Rogna, Marco & Vogt, Carla J., 2021. "Accounting for inequality aversion can justify the 2° C goal," Ruhr Economic Papers 925, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Marco Rogna, 2020. "Microeconomic models of a production economy with environmental externalities," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(3), pages 2625-2650, March.
    4. Jasper N. Meya & Ulrike Kornek & Kai Lessmann, 2018. "How empirical uncertainties influence the stability of climate coalitions," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 18(2), pages 175-198, April.
    5. Thijs Dekker & Rob Dellink & Janina Ketterer, 2013. "The Fatter the Tail, the Fatter the Climate Agreement - Simulating the Influence of Fat Tails in Climate Change Damages on the Success of International Climate Negotiations," CESifo Working Paper Series 4059, CESifo.
    6. S. Yu & E. C. Ierland & H.-P. Weikard & X. Zhu, 2017. "Nash bargaining solutions for international climate agreements under different sets of bargaining weights," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 17(5), pages 709-729, October.
    7. Matteo Roggero & Leonhard Kähler & Achim Hagen, 2019. "Strategic cooperation for transnational adaptation: lessons from the economics of climate change mitigation," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 19(4), pages 395-410, October.
    8. Ulrike Kornek & Jan Christoph Steckel & Kai Lessmann & Ottmar Edenhofer, 2017. "The climate rent curse: new challenges for burden sharing," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 17(6), pages 855-882, December.
    9. Rob Dellink & Thijs Dekker & Janina Ketterer, 2013. "The Fatter the Tail, the Fatter the Climate Agreement," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(2), pages 277-305, October.

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