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International environmental agreements without commitment

Author

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  • Larry Karp

    (UC Berkeley)

  • Hiroaki Sakamoto

Abstract

We analyze a dynamic model of international agreements where countries cannot make long-term commitments and have no sanctions or rewards to induce participation. Countries can communicate with each other to build endogenous beliefs about the random consequences of (re)opening nego- tiation. Provided that countries are patient, many different agreements might emerge, including an effective agreement with many participants. Along the way, however, negotiation might yield a succession of short-lived agreements with a small number of participants. Beliefs are important, and negotiations matter. Our theoretical results are consistent with the existing empirical observations and they explain the `paradox of interna- tional agreements'.

Suggested Citation

  • Larry Karp & Hiroaki Sakamoto, 2018. "International environmental agreements without commitment," 2018 Meeting Papers 508, Society for Economic Dynamics.
    • Handle: RePEc:red:sed018:508
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    References listed on IDEAS

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