The incentives to participate in and the stability of climate coalitions
12:00 - 13:00
The purpose of this paper is to undertake a game-theoretic analysis of the following three issues: i) the incentives for main GHG emitting countries to participate in an international climate policy agreement, i.e. in a “climate coalition”; ii) the stability of such climate coalitions; iii) the potential for improving this stability through international financial transfers and arrangements. This analysis is carried out using the general equilibrium model WITCH.