IDEAS home Printed from https://ideas.repec.org/p/cte/werepe/2895.html
   My bibliography  Save this paper

Environmental consciousness and moral hazard international agreements to protect the environment

Author

Abstract

A group of countries that can potentially commit to cooperation to protect the environment are identified as environmentally-conscious countries. Conditions are examined under which they can provide self-financing side payments, to a second group of less environmentally-conscious countries, so that the two groups form a global or partial stable coalition that agrees to emit at the first-best global welfare optimum. A mechanism is also developed which must be incorporated into the agreement between the two groups, in order to induce all countries to emit at the desired level, even when global pollution has nonpoint source pollution characteristics.

Suggested Citation

  • Xepapadeas, Anastasios, 1993. "Environmental consciousness and moral hazard international agreements to protect the environment," UC3M Working papers. Economics 2895, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:2895
    as

    Download full text from publisher

    File URL: https://e-archivo.uc3m.es/rest/api/core/bitstreams/4f9f388b-6114-44dd-bafa-13bc3c229404/content
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Michael Hoel, 1992. "International environment conventions: The case of uniform reductions of emissions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(2), pages 141-159, March.
    3. 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.
    4. Xepapadeas, A. P., 1991. "Environmental policy under imperfect information: Incentives and moral hazard," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 113-126, March.
    5. Laffont, Jean-Jacques, 1994. "The New Economics of Regulation Ten Years After," Econometrica, Econometric Society, vol. 62(3), pages 507-537, May.
    6. Frederick Ploeg & Aart Zeeuw, 1992. "International aspects of pollution control," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(2), pages 117-139, March.
    7. Parkash Chander & Henry Tulkens, 2006. "Theoretical Foundations of Negotiations and Cost Sharing in Transfrontier Pollution Problems," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 123-134, Springer.
    8. Carraro, Carlo & Siniscalco, Domenico, 1992. "The international dimension of environmental policy," European Economic Review, Elsevier, vol. 36(2-3), pages 379-387, April.
    9. Segerson, Kathleen, 1988. "Uncertainty and incentives for nonpoint pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 87-98, March.
    10. Hoel Michael, 1994. "Efficient Climate Policy in the Presence of Free Riders," Journal of Environmental Economics and Management, Elsevier, vol. 27(3), pages 259-274, November.
    11. Xepapadeas, A., 1995. "Induced technical change and international agreements under greenhouse warming," Resource and Energy Economics, Elsevier, vol. 17(1), pages 1-23, May.
    12. Barrett, Scott, 1990. "The Problem of Global Environmental Protection," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 6(1), pages 68-79, Spring.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luciano Mendez & Rafael Trelles, 2000. "The Abatement Market A Proposal for Environmental Cooperation among Asymmetric Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(1), pages 15-30, May.
    2. Santiago J. Rubio, 2001. "International Cooperation In Pollution Control," Working Papers. Serie AD 2001-21, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    3. Houda Haffoudhi, 2005. "Political-support lobbies responses to international environmental agreements," Cahiers de la Maison des Sciences Economiques j05053, Université Panthéon-Sorbonne (Paris 1).
    4. Finus, Michael & Rundshagen, Bianca, 1998. "Toward a Positive Theory of Coalition Formation and Endogenous Instrumental Choice in Global Pollution Control," Public Choice, Springer, vol. 96(1-2), pages 145-186, July.
    5. Hans Gersbach & Noemi Hummel & Ralph Winkler, 2011. "Sustainable Climate Treaties," Diskussionsschriften dp1105, Universitaet Bern, Departement Volkswirtschaft.
    6. Valentina Bosetti & Enrica De Cian, 2013. "A Good Opening: The Key to Make the Most of Unilateral Climate Action," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(2), pages 255-276, October.
    7. Jean-Christophe Pereau & Tarik Tazdait, 2001. "Co-operation and Unilateral Commitment in the Presence of Global Environmental Problems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(3), pages 225-239, November.
    8. Luisito Bertinelli & Amer Tabakovic & Luca Marchiori & Benteng Zou, 2015. "Transboundary Pollution Abatement: The Impact of Unilateral Commitment in Differential Games," DEM Discussion Paper Series 15-02, Department of Economics at the University of Luxembourg.
    9. Marchiori, Carmen & Dietz, Simon & Tavoni, Alessandro, 2017. "Domestic politics and the formation of international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 115-131.
    10. Hagen, Achim & Schopf, Mark, 2024. "Political influence on international climate agreements with border carbon adjustment," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    11. Raihan, Selim, 2010. "Implications of the Global Economic Crisis for the Bangladesh Economy," Conference papers 331959, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Houda Haffoudhi, 2005. "Political-support lobbies responses to international environmental agreements," Post-Print halshs-00195593, HAL.
    13. de Zeeuw, Aart, 2008. "Dynamic effects on the stability of international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 163-174, March.
    14. Ngo Van Long, 2014. "The Green Paradox in Open Economies," CESifo Working Paper Series 4639, CESifo.
    15. Pim Heijnen & Lammertjan Dam, 2019. "Catastrophe and Cooperation," Dynamic Games and Applications, Springer, vol. 9(1), pages 122-141, March.
    16. Barrett, Scott, 2001. "International cooperation for sale," European Economic Review, Elsevier, vol. 45(10), pages 1835-1850, December.
    17. Phillip Daves & Michael Ehrhardt, 2011. "Creating a synthetic after-tax zero-coupon bond using US Treasury STRIP bonds: implications for the true after-tax spot rate," Applied Financial Economics, Taylor & Francis Journals, vol. 21(10), pages 695-705.
    18. Houda Haffoudhi, 2005. "The logic of two-level games with endogenous lobbying: the case of international environmental agreements," Cahiers de la Maison des Sciences Economiques j05054, Université Panthéon-Sorbonne (Paris 1).
    19. Gilles Rotillon & Tazdaït Tarik, 2003. "Coopération internationale et problèmes environnementaux globaux : vision normative versus vision positive," Revue d’économie du développement, De Boeck Université, vol. 11(1), pages 101-134.
    20. Houda Haffoudhi, 2005. "The logic of two-level games with endogenous lobbying: the case of international environmental agreements," Post-Print halshs-00195605, HAL.

    More about this item

    Keywords

    Environmental Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cte:werepe:2895. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ana Poveda (email available below). General contact details of provider: http://www.eco.uc3m.es/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.