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Evolution in time of Farsightedly Stable Coalitions: An Application of FUND

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  • Dritan Osmani
  • Richard S.J. Tol

    (Economic and Social Research Institute)

Abstract

Game theory is used to analyze the formation and stability of coalitions for environmental protection. The paper extends further our previous research on farsightedly stable coalitions and preferred farsightedly stable coalitions (Osmani & Tol 2007a). The integrated assessment model FUND provides data for di®erent time horizons as well as the cost-bene¯t function of pollution abatement. This allows for analysis of the evolution in time of farsightedly stable coalitions and their improvement to environment and welfare. Considering multiple farsightedly stable coalitions, the participation in coalitions for environmental protection is signi¯cantly increased, which is a positive result of our game theoretical approach. But the farsighted behavior can not be sustained for a long term which implies that we can not have big coalitions for environmental protection even in "a farsighted world".

Suggested Citation

  • Dritan Osmani & Richard S.J. Tol, 2008. "Evolution in time of Farsightedly Stable Coalitions: An Application of FUND," Working Papers FNU-162, Research unit Sustainability and Global Change, Hamburg University, revised May 2008.
    • Handle: RePEc:sgc:wpaper:162
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    References listed on IDEAS

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    Cited by:

    1. Christine Schleupner & P. Michael Link, 2008. "Eiderstedt im Spannungsfeld zwischen Naturschutz- und Agrarpolitik - Entwicklung eines methodischen Ansatzes für ein nachhaltiges Ressourcenmanagement," Working Papers FNU-168, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2008.
    2. P. Michael Link & C. Ivie Ramos & Uwe A. Schneider & Erwin Schmid & J. Balkovic & R. Skalsky, 2008. "The interdependencies between food and biofuel production in European agriculture - an application of EUFASOM," Working Papers FNU-165, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2008.
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    More about this item

    Keywords

    game theory; integrated assessment modeling; farsighted stability; coalition formation;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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