IDEAS home Printed from https://ideas.repec.org/p/srt/wpaper/0418.html
   My bibliography  Save this paper

An Evolutionary Approach to International Environmental Agreements

Author

Listed:
  • Tiziano Distefano

    (Department of Environmental, Land and Infrastructure Engineering, Politecnico di Torino, Italy)

  • Simone D'Alessandro

    (University of Pisa, Department of Economics and Management, Italy)

Abstract

Our work contributes to explain the origin of the failure or success of international environmental agreements (IEA) and their relation with the actual aggregate global level of greenhouse gas emissions, by including climate risks, cross-country inequalities, and consumer's environmental awareness. We introduce a novel multi-scale framework, composed by two tied games, to show under which conditions a country is able to fulfil the IEA: (i) a one-shot 2x2 Game, with asymmetric countries that negotiate on the maximum share of emissions, and (ii) an Evolutionary Game which describes the economic structure through the interaction of households and rms' strategies.

Suggested Citation

  • Tiziano Distefano & Simone D'Alessandro, 2018. "An Evolutionary Approach to International Environmental Agreements," SEEDS Working Papers 0418, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Mar 2018.
  • Handle: RePEc:srt:wpaper:0418
    as

    Download full text from publisher

    File URL: http://www.sustainability-seeds.org/papers/RePec/srt/wpaper/0418.pdf
    File Function: First version, 2018
    Download Restriction: no

    File URL: http://www.sustainability-seeds.org/papers/RePec/srt/wpaper/0418.pdf
    File Function: Revised version, 2018
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mason, Charles F. & Polasky, Stephen & Tarui, Nori, 2017. "Cooperation on climate-change mitigation," European Economic Review, Elsevier, vol. 99(C), pages 43-55.
    2. Gelves, Alejandro & McGinty, Matthew, 2016. "International environmental agreements with consistent conjectures," Journal of Environmental Economics and Management, Elsevier, vol. 78(C), pages 67-84.
    3. Stefano Carattini & Simon Levin & Alessandro Tavoni, 2019. "Cooperation in the Climate Commons," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(2), pages 227-247.
    4. Zili Yang, 2017. "Likelihood of environmental coalitions and the number of coalition members: evidences from an IAM model," Annals of Operations Research, Springer, vol. 255(1), pages 9-28, August.
    5. Marrouch, Walid & Ray Chaudhuri, Amrita, 2016. "International Environmental Agreements: Doomed to Fail or Destined to Succeed? A Review of the Literature," International Review of Environmental and Resource Economics, now publishers, vol. 9(3-4), pages 245-319, September.
    6. de Zeeuw, A.J., 2008. "Dynamic effects on the stability of international environmental agreements," Other publications TiSEM 41f27f71-d6e6-463e-9b03-f, Tilburg University, School of Economics and Management.
    7. Marius Ochea & Aart Zeeuw, 2015. "Evolution of Reciprocity in Asymmetric International Environmental Negotiations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 837-854, December.
    8. Michael Finus & Alejandro Caparrós (ed.), 2015. "Game Theory and International Environmental Cooperation," Books, Edward Elgar Publishing, number 15345.
    9. Marco Battaglini & Bård Harstad, 2016. "Participation and Duration of Environmental Agreements," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 160-204.
    10. Naghmeh Nasiritousi & Mattias Hjerpe & Björn-Ola Linnér, 2016. "The roles of non-state actors in climate change governance: understanding agency through governance profiles," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 16(1), pages 109-126, February.
    11. Carlo Carraro & Johan Eyckmans & Michael Finus, 2006. "Optimal transfers and participation decisions in international environmental agreements," The Review of International Organizations, Springer, vol. 1(4), pages 379-396, December.
    12. 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.
    13. 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.
    14. Elinor Ostrom, 2014. "A Polycentric Approach For Coping With Climate Change," Annals of Economics and Finance, Society for AEF, vol. 15(1), pages 97-134, May.
    15. 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.
    16. Alfred Endres & Michael Finus, 1999. "International Environmental Agreements: How the Policy Instrument Affects Equilibrium Emissions and Welfare," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 155(3), pages 527-527, September.
    17. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-894, Supplemen.
    18. Pavlova, Yulia & de Zeeuw, Aart, 2013. "Asymmetries in international environmental agreements," Environment and Development Economics, Cambridge University Press, vol. 18(1), pages 51-68, February.
    19. Kolstad, Charles D., 2007. "Systematic uncertainty in self-enforcing international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 68-79, January.
    20. Matthew McGinty, 2010. "International Environmental Agreements as Evolutionary Games," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(2), pages 251-269, February.
    21. Jonathan Colmer, 2011. "Asymmetry, optimal transfers and international environmental agreements," GRI Working Papers 66, Grantham Research Institute on Climate Change and the Environment.
    22. Elvio Accinelli & Edgar J. Sánchez Carrera, 2010. "On evolutionarily stable strategies and replicator dynamics in asymmetric two-population games," Documentos de Trabajo (working papers) 1010, Department of Economics - dECON.
    23. Marianna Belloc & Samuel Bowles, 2013. "The Persistence of Inferior Cultural-Institutional Conventions," American Economic Review, American Economic Association, vol. 103(3), pages 93-98, May.
    24. Alfred Endres & Bianca Rundshagen, 2013. "Incentives to Diffuse Advanced Abatement Technology Under the Formation of International Environmental Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(2), pages 177-210, October.
    25. Calvo, Emilio & Rubio, Santiago J., 2013. "Dynamic Models of International Environmental Agreements: A Differential Game Approach," International Review of Environmental and Resource Economics, now publishers, vol. 6(4), pages 289-339, April.
    26. Aart de Zeeuw, 2015. "International Environmental Agreements," Annual Review of Resource Economics, Annual Reviews, vol. 7(1), pages 151-168, October.
    27. Guangliang Ye & Jinhua Zhao, 2016. "Environmental Regulation in a Mixed Economy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(1), pages 273-295, September.
    28. Funtowicz, Silvio O. & Ravetz, Jerome R., 1994. "The worth of a songbird: ecological economics as a post-normal science," Ecological Economics, Elsevier, vol. 10(3), pages 197-207, August.
    29. Matthew McGinty, 2007. "International environmental agreements among asymmetric nations," Oxford Economic Papers, Oxford University Press, vol. 59(1), pages 45-62, January.
    30. 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.
    31. Irene Alvarado-Quesada & Hans-Peter Weikard, 2017. "International Environmental Agreements for biodiversity conservation: a game-theoretic analysis," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 17(5), pages 731-754, October.
    32. Christoph Böhringer & Michael Finus & Carsten Vogt (ed.), 2002. "Controlling Global Warming," Books, Edward Elgar Publishing, number 2535.
    33. Carsten Vogt, 2016. "Climate Coalition Formation When Players are Heterogeneous and Inequality Averse," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(1), pages 33-59, September.
    34. -, 2009. "The economics of climate change," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38679, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Giorgos Stamatopoulos, 2021. "On the core of economies with multilateral environmental externalities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(1), pages 158-171, February.

    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. Carlo Carraro, 2014. "International environmental cooperation," Chapters, in: Giles Atkinson & Simon Dietz & Eric Neumayer & Matthew Agarwala (ed.), Handbook of Sustainable Development, chapter 26, pages 418-431, Edward Elgar Publishing.
    2. Biancardi, Marta & Villani, Giovanni, 2015. "The effects of R&D investments in international environmental agreements with asymmetric countries," Chaos, Solitons & Fractals, Elsevier, vol. 79(C), pages 30-39.
    3. Kováč, Eugen & Schmidt, Robert C., 2021. "A simple dynamic climate cooperation model," Journal of Public Economics, Elsevier, vol. 194(C).
    4. Gilbert Kollenbach, 2022. "International Environmental Agreements and Black Technology," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(3), pages 601-624, July.
    5. Karp, Larry & Sakamoto, Hiroaki, 2021. "Sober optimism and the formation of international environmental agreements," Journal of Economic Theory, Elsevier, vol. 197(C).
    6. Bakalova, Irina & Eyckmans, Johan, 2019. "Simulating the impact of heterogeneity on stability and effectiveness of international environmental agreements," European Journal of Operational Research, Elsevier, vol. 277(3), pages 1151-1162.
    7. Hans-Peter Weikard & Rob Dellink, 2014. "Sticks and carrots for the design of international climate agreements with renegotiations," Annals of Operations Research, Springer, vol. 220(1), pages 49-68, September.
    8. Sareh Vosooghi & Maria Arvaniti & Frederick Van Der Ploeg, 2022. "Self-enforcing climate coalitions for farsighted countries: integrated analysis of heterogeneous countries," Economics Series Working Papers 971, University of Oxford, Department of Economics.
    9. McEvoy, David M. & McGinty, Matthew, 2018. "Negotiating a uniform emissions tax in international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 90(C), pages 217-231.
    10. Tiziano Distefano & Simone D’Alessandro, 2021. "A new two-nested-game approach: linking micro- and macro-scales in international environmental agreements," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 21(3), pages 493-516, September.
    11. Nkuiya, Bruno, 2020. "Stability of international environmental agreements under isoelastic utility," Resource and Energy Economics, Elsevier, vol. 59(C).
    12. Dellink, Rob & Finus, Michael, 2012. "Uncertainty and climate treaties: Does ignorance pay?," Resource and Energy Economics, Elsevier, vol. 34(4), pages 565-584.
    13. Mason, Charles F. & Polasky, Stephen & Tarui, Nori, 2017. "Cooperation on climate-change mitigation," European Economic Review, Elsevier, vol. 99(C), pages 43-55.
    14. Charles Mason, 2019. "On Climate Agreements with Asymmetric Countries: Theory and Experimental Results," Working Papers 2019.22, FAERE - French Association of Environmental and Resource Economists.
    15. Colombo, Luca & Labrecciosa, Paola & Van Long, Ngo, 2022. "A dynamic analysis of international environmental agreements under partial cooperation," European Economic Review, Elsevier, vol. 143(C).
    16. Hong, Fuhai & Karp, Larry, 2012. "International Environmental Agreements with mixed strategies and investment," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 685-697.
    17. Karp, Larry & Simon, Leo, 2013. "Participation games and international environmental agreements: A non-parametric model," Journal of Environmental Economics and Management, Elsevier, vol. 65(2), pages 326-344.
    18. 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.
    19. Jan Kersting & Vicki Duscha & Matthias Weitzel, 2017. "Cooperation on Climate Change under Economic Linkages: How the Inclusion of Macroeconomic Effects Affects Stability of a Global Climate Coalition," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    20. Hans-Peter Weikard & Leo Wangler & Andreas Freytag, 2015. "Minimum Participation Rules with Heterogeneous Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 711-727, December.

    More about this item

    Keywords

    International environmental agreements; asymmetry; evolutionary process; Multi-level perspective; climate change;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:srt:wpaper:0418. 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: Alessandro Palma (email available below). General contact details of provider: http://www.sustainability-seeds.org .

    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.