Designing International Environmental Agreements : Incentive Compatible Strategies for Cost-Effective Cooperation

By: Carsten Schmidt

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240 Pages

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The international character of today's most pressing environmental problems has become a key challenge for environmental policy-making. This study combines two core dimensions of international environmental policy: the traditional search for cost-effective policy instruments and the creation of incentives for voluntary co-operation among sovereign nations. The analysis offers some policy recommendations for the design of environmental treaties and for the further development of existing international institutions to protect the global environment.

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List of Figures	p. ix
List of Tables	p. xi
List of Abbreviations	p. xiii
Preface	p. xv
Introduction	p. 1
International Environmental Problems	p. 9
Natural Scientific Background	p. 9
The History of Global Environmental Policy	p. 17
Theoretical Framework	p. 28
Cost-effectiveness	p. 47
The Concept of Cost-effectiveness	p. 47
Cost-effectiveness when Countries Differ in Size	p. 54
Empirical Relevance for Carbon Emissions	p. 72
Cost-effective Policy Instruments	p. 82
Incentive Compatibility	p. 89
Introduction	p. 89
The Choice of Internalization Instrument	p. 92
Internal Stabilization	p. 98
External Stabilization	p. 102
Unilateral Measures	p. 115
Flexibility and Framework Provisions	p. 120
Conclusions	p. 121
Enforcement and Side Payments	p. 125
Introduction	p. 125
The Model	p. 127
An Enforceable Agreement with Side Payments	p. 130
The Case of Three Countries	p. 144
Conclusions	p. 149
Financing Incremental Abatement Costs under Asymmetric Information	p. 153
Introduction	p. 153
Agreements under Perfect Information	p. 156
Signaling Incentives	p. 159
Transfers in the Separating Equilibrium	p. 163
Transfers in the Pooling Equilibrium	p. 165
Conclusions	p. 171
Institutions for the Global Environment	p. 173
The Global Environment Facility	p. 174
The Montreal Protocol Multilateral Fund	p. 183
Joint Implementation	p. 185
Summary and Outlook	p. 189
The Scope and Results of the Study	p. 189
Future Directions in International Environmental Policy	p. 194
Appendix	p. 197
Efficient Bargaining Solutions	p. 197
The 'Permits and Standards' Approach	p. 198
Bibliography	p. 201
Index	p. 219
Table of Contents provided by Syndetics. All Rights Reserved.

Designing International Environmental Agreements : Incentive Compatible Strategies for Cost-Effective Cooperation

At a Glance

Hardcover

Shipping

How to return your order

Defective items

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