Please use this identifier to cite or link to this item:
https://ruomo.lib.uom.gr/handle/7000/844
Title: | International Environmental Agreements and Trading Blocks — Can Issue Linkage Enhance Cooperation? |
Authors: | Strantza, Stefania Sartzetakis, Eftichios S. Diamantoudi, Effrosyni |
Type: | Article |
Subjects: | FRASCATI::Social sciences::Economics and Business::Economics FRASCATI::Social sciences::Economics and Business::Economics |
Keywords: | Environmental agreements International trade |
Issue Date: | 2020 |
Source: | Strategic Behavior and the Environment |
Volume: | 8 |
Issue: | 3 |
First Page: | 269 |
Last Page: | 310 |
Abstract: | This paper examines the effect of designing international agreements that jointly determine environmental and trade policies on the participation level and aggregate welfare. This paper builds on the non-cooperative game approach of the International Environmental Agreements (IEAs) literature extending the basic model by introducing firms that trade in a global market. Countries choose the level of a tax on emissions and a tariff on imports: signatories enjoy tariff-free trade among themselves, impose a tariff to nonsignatories and a common emissions tax; nonsignatories levy a tariff on imports and a tax on domestic emissions. Resorting to numerical simulations, the paper shows increased participation to the joint agreement of around 70% of the total number of countries. These coalitions are not only much larger than the two-country coalition derived in the case without trade, but they also achieve substantial welfare improvements of around 60% of the welfare improvement the grand coalition provides over the coalition of two. The paper presents a series of numerical simulations to confirm the robustness of these results to changes in the parameters values. |
URI: | https://doi.org/10.1561/102.00000096 https://ruomo.lib.uom.gr/handle/7000/844 |
ISSN: | 1944-012X 1944-0138 |
Other Identifiers: | 10.1561/102.00000096 |
Appears in Collections: | Department of Economics |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
sbe-096 - revised proofs.pdf | 917,68 kB | Adobe PDF | View/Open |
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.