International environmental agreements with support

Erik Ansink, Hans Peter Weikard, Cees Withagen

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

We augment the standard cartel formation game from non-cooperative coalition theory, often applied in the context of international environmental agreements, with the possibility that singletons support coalition formation without becoming coalition members themselves. We assume their support takes the form of a monetary transfer to the coalition, in order to induce larger coalitions, higher levels of public good provision and higher payoffs. We show that, under mild conditions on the costs and benefits of contributing to the public good (e.g. abatement of greenhouse gas emissions), there exist equilibria with support. Allowing for support increases payoffs to each of three types of agents: members, supporters and free-riders.

Original languageEnglish
Pages (from-to)241-252
Number of pages12
JournalJournal of Environmental Economics and Management
Volume97
DOIs
Publication statusPublished - 2019

Fingerprint

greenhouse gas
cost
International environmental agreements
Abatement
Free riders
Coalition formation
Greenhouse gas emissions
Costs and benefits
Cartel

Keywords

  • Coalition formation
  • International environmental agreements
  • Public goods
  • Support
  • Transfers

Cite this

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International environmental agreements with support. / Ansink, Erik; Weikard, Hans Peter; Withagen, Cees.

In: Journal of Environmental Economics and Management, Vol. 97, 2019, p. 241-252.

Research output: Contribution to JournalArticleAcademicpeer-review

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AU - Weikard, Hans Peter

AU - Withagen, Cees

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AB - We augment the standard cartel formation game from non-cooperative coalition theory, often applied in the context of international environmental agreements, with the possibility that singletons support coalition formation without becoming coalition members themselves. We assume their support takes the form of a monetary transfer to the coalition, in order to induce larger coalitions, higher levels of public good provision and higher payoffs. We show that, under mild conditions on the costs and benefits of contributing to the public good (e.g. abatement of greenhouse gas emissions), there exist equilibria with support. Allowing for support increases payoffs to each of three types of agents: members, supporters and free-riders.

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