New Roads to International Environmental Agreements: The Case of Global Warming
Michael Finus, Johan Eyckmans
Design of climate treaty protocol,Coalition formation,Non-cooperative game theory
Climate Change and Sustainable Development
We analyze with an integrated assessment model of climate change the formation of international environmental agreements (IEAs) by applying the widely used concept of internal & external stability and several modifications of it. We relax the assumptions of a single agreement and open membership rule. It turns out that regional agreements are superior to a single agreement and exclusive is superior to open membership in welfare and ecological terms. Moreover, we show the importance of transfers for successful treaty-making. We relate our results to the design of current and past IEAs as well as to other issues of international policy coordination.