Self-enforcing environmental agreements : a literature survey on non-cooperative games.

Abstract

The purpose of this study is to present the main theoretical contributions in the emergence of self-enforcing international environmental agreements. We consider models that use as a policy instrument emission level or abatement efforts. We start our analysis with the simple static case assuming identical countries. As we relax our assumptions and we consider asymmetric countries and time dimension larger stable coalition closer to Pareto optimal state consists an equilibrium. We also investigate policies that assist in the enhancement of coalition such as transfers trade sanctions and issue linkage. The results are dubious and the usefulness of these policies depend on the assumptions of each model.