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Stable International Environmental Agreements: An Analytical Approach

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  • Effrosyni Diamantoudi

    (Department of Economics, Concordia University)

  • Eftichios S. Sartzetakis

    (Department of Accounting and Finance, University of Macedonia)

Abstract

In this paper we examine the formation of International Environmental Agreements (IEAs). We show that the welfare of the signatories does not increase monotonically with respect to the number of signatories. We provide an analytical solution of the leadership model. In particular, we find that the unique stable IEA consist of either two, three or four signatories if the number of countries is greater than 4. Furthermore, we show that the welfare of the signatories is almost at its lowest level when the IEA is stable. While in our where the choice variable is abatement efforts.

Suggested Citation

  • Effrosyni Diamantoudi & Eftichios S. Sartzetakis, 2001. "Stable International Environmental Agreements: An Analytical Approach," Working Papers 04001, Concordia University, Department of Economics, revised Feb 2003.
    • Handle: RePEc:crd:wpaper:04001
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    More about this item

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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