A trade-environment coalition game

We identify several interconnections between international environmental problems and trade issues. Inspired by the work of Barrett (1997), we propose a model that links the problem of forming International Environmental Agreements (IEAs) with International Trade Agreements. We broaden Barrett'...

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محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Marrouch, Walid (author)
مؤلفون آخرون: Sbargia, Lucia (author)
التنسيق: conferenceObject
منشور في: 2009
الوصول للمادة أونلاين:http://hdl.handle.net/10725/7317
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
http://www.cireqmontreal.com/en/view/3301/3301
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author Marrouch, Walid
author2 Sbargia, Lucia
author2_role author
author_facet Marrouch, Walid
Sbargia, Lucia
author_role author
dc.creator.none.fl_str_mv Marrouch, Walid
Sbargia, Lucia
dc.date.none.fl_str_mv 2009
2018-04-03T12:08:30Z
2018-04-03T12:08:30Z
2018-04-03
dc.identifier.none.fl_str_mv http://hdl.handle.net/10725/7317
Marrouch, W., & Sbragia, L. (2009). A Trade-Environment Coalition Game. In Cinquième colloque CIREQ des étudiants de doctorat.
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
http://www.cireqmontreal.com/en/view/3301/3301
dc.language.none.fl_str_mv en
dc.publisher.none.fl_str_mv CIREQ
dc.rights.*.fl_str_mv info:eu-repo/semantics/openAccess
dc.title.none.fl_str_mv A trade-environment coalition game
dc.type.none.fl_str_mv Conference Paper / Proceeding
info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/conferenceObject
description We identify several interconnections between international environmental problems and trade issues. Inspired by the work of Barrett (1997), we propose a model that links the problem of forming International Environmental Agreements (IEAs) with International Trade Agreements. We broaden Barrett's model by considering a more general form of trade coalition with trade sanctions in the form of differential tariff treatment instead of complete trade-bans. Such scenario is currently under discussion as a potential post-Kyoto framework after the year 2012. We introduce a meta-game with two stages. The first one is an environmental coalition formation game. The second one is a trade-production game. We compute the stability function of the IEA, and we find that the existence of positive spillovers (public good effect) when IEAs are formed exacerbates free riding incentives and leads to less cooperation. However, since countries are linked via trade, tying-in environmental and trade agreements generates negative spillovers over defectors. We find that these negative spillovers can potentially neutralize the perverse free riding incentives and as such sustain larger environmental coalitions.
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spelling A trade-environment coalition gameMarrouch, WalidSbargia, LuciaWe identify several interconnections between international environmental problems and trade issues. Inspired by the work of Barrett (1997), we propose a model that links the problem of forming International Environmental Agreements (IEAs) with International Trade Agreements. We broaden Barrett's model by considering a more general form of trade coalition with trade sanctions in the form of differential tariff treatment instead of complete trade-bans. Such scenario is currently under discussion as a potential post-Kyoto framework after the year 2012. We introduce a meta-game with two stages. The first one is an environmental coalition formation game. The second one is a trade-production game. We compute the stability function of the IEA, and we find that the existence of positive spillovers (public good effect) when IEAs are formed exacerbates free riding incentives and leads to less cooperation. However, since countries are linked via trade, tying-in environmental and trade agreements generates negative spillovers over defectors. We find that these negative spillovers can potentially neutralize the perverse free riding incentives and as such sustain larger environmental coalitions.N/ACIREQ2018-04-03T12:08:30Z2018-04-03T12:08:30Z20092018-04-03Conference Paper / Proceedinginfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/conferenceObjecthttp://hdl.handle.net/10725/7317Marrouch, W., & Sbragia, L. (2009). A Trade-Environment Coalition Game. In Cinquième colloque CIREQ des étudiants de doctorat.http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttp://www.cireqmontreal.com/en/view/3301/3301eninfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/73172021-03-19T09:10:16Z
spellingShingle A trade-environment coalition game
Marrouch, Walid
status_str publishedVersion
title A trade-environment coalition game
title_full A trade-environment coalition game
title_fullStr A trade-environment coalition game
title_full_unstemmed A trade-environment coalition game
title_short A trade-environment coalition game
title_sort A trade-environment coalition game
url http://hdl.handle.net/10725/7317
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
http://www.cireqmontreal.com/en/view/3301/3301