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Cooperation in international environmental negotiations due to a preference for equity

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  • Lange, Andreas
  • Vogt, Carsten

Abstract

This paper demonstrates that cooperation in international environmental negotiations can be explained by preferences for equity. Within a N-country prisoner?s dilemma in which agents can either cooperate or defect, in addition to the standard non-cooperative equilibrium, cooperation of a large fraction or even of all countries can establish a Nash equilibrium. In an emission game, however, where countries can choose their abatement level continuously, equity preferences cannot improve upon the standard inefficient Nash-equilibrium. Finally, in a two stage game on coalition formation, the presence of equity-interested countries increases the coalition size and leads to efficiency gains. Here, even a stable agreement with full cooperation can be reached.

Suggested Citation

  • Lange, Andreas & Vogt, Carsten, 2001. "Cooperation in international environmental negotiations due to a preference for equity," ZEW Discussion Papers 01-14, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:5369
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    More about this item

    Keywords

    international environmental negotiations; cooperation; equity preference; coalition formation;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General

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