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The Effects of the Length of the Period of Commitment on the Size of Stable International Environmental Agreements

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  • Nkuiya, Bruno

Abstract

This paper extends the standard model of self-enforcing dynamc international environmental agreements by allowing the length of the period of commitment of such agreements to vary as a parameter. It analyzes the pattern of behavior of the size of stable coalitions, the stock of pollution, and the emission rate as a function of the length of the period of commitment. It is shown that the length of the period of commitment can have very significant effects on the equilibrium. We show numerically that at the initial date, as the length of commitment is increased, the potential gain from cooperation tends to diminish, increasing the disincentive to ratify the agreements. This suggests that considerable attention should be given to the determination of the length of such international agreements.

Suggested Citation

  • Nkuiya, Bruno, 2012. "The Effects of the Length of the Period of Commitment on the Size of Stable International Environmental Agreements," Working Papers 132419, University of Laval, Center for Research on the Economics of the Environment, Agri-food, Transports and Energy (CREATE).
    • Handle: RePEc:ags:ulavwp:132419
    DOI: 10.22004/ag.econ.132419
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    References listed on IDEAS

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    1. Alistair Ulph, 2004. "Stable International Environmental Agreements with a Stock Pollutant, Uncertainty and Learning," Journal of Risk and Uncertainty, Springer, vol. 29(1), pages 53-73, July.
    2. Claude d'Aspremont & Alexis Jacquemin & Jean Jaskold Gabszewicz & John A. Weymark, 1983. "On the Stability of Collusive Price Leadership," Canadian Journal of Economics, Canadian Economics Association, vol. 16(1), pages 17-25, February.
    3. Bruno Nkuiya & Walid Marrouch & Eric Bahel, 2015. "International Environmental Agreements under Endogenous Uncertainty," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(5), pages 752-772, October.
    4. Carraro, Carlo & Siniscalco, Domenico, 1993. "Strategies for the international protection of the environment," Journal of Public Economics, Elsevier, vol. 52(3), pages 309-328, October.
    5. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-894, Supplemen.
    6. Nkuiya, Bruno, 2011. "International Emission Strategies under the Threat of a Sudden Jump in Damages," Working Papers 117826, University of Laval, Center for Research on the Economics of the Environment, Agri-food, Transports and Energy (CREATE).
    7. Reinganum, Jennifer F & Stokey, Nancy L, 1985. "Oligopoly Extraction of a Common Property Natural Resource: The Importance of the Period of Commitment in Dynamic Games," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(1), pages 161-173, February.
    8. Rubio, Santiago J. & Ulph, Alistair, 2007. "An infinite-horizon model of dynamic membership of international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 54(3), pages 296-310, November.
    9. Dockner Engelbert J. & Van Long Ngo, 1993. "International Pollution Control: Cooperative versus Noncooperative Strategies," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 13-29, July.
    10. Bruno Nkuiya, 2011. "International Emission Strategies under the Threat of a Sudden Jump in Damages," Cahiers de recherche CREATE 2011-1, CREATE.
    11. Santiago Rubio & Begoña Casino, 2005. "Self-enforcing international environmental agreements with a stock pollutant," Spanish Economic Review, Springer;Spanish Economic Association, vol. 7(2), pages 89-109, June.
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    Cited by:

    1. Lazkano, Itziar & Marrouch, Walid & Nkuiya, Bruno, 2016. "Adaptation to climate change: how does heterogeneity in adaptation costs affect climate coalitions?," Environment and Development Economics, Cambridge University Press, vol. 21(6), pages 812-838, December.
    2. Miller, Steve & Nkuiya, Bruno, 2016. "Coalition formation in fisheries with potential regime shift," Journal of Environmental Economics and Management, Elsevier, vol. 79(C), pages 189-207.
    3. Bruno Nkuiya & Walid Marrouch & Eric Bahel, 2015. "International Environmental Agreements under Endogenous Uncertainty," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(5), pages 752-772, October.
    4. Bediako, Kwabena & Nkuiya, Bruno, 2022. "Stability of international fisheries agreements under stock growth uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 113(C).
    5. Breton, Michèle & Sbragia, Lucia, 2023. "Self-image and the stability of international environmental agreements," Ecological Economics, Elsevier, vol. 211(C).
    6. Katharina Schüller & Kateřina Staňková & Frank Thuijsman, 2017. "Game Theory of Pollution: National Policies and Their International Effects," Games, MDPI, vol. 8(3), pages 1-15, July.

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    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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