International environmental agreements with support

Erik Ansink, Hans-Peter Weikard, Cees Withagen

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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
Early online date24 Feb 2018
DOIs
Publication statusPublished - Sep 2019

Keywords

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

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