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GTAP Resource #582

"International Games of Climate Change Policies"
by Kemfert, Claudia

The process towards an establishment of international environmental agreements as the implementation of the Kyoto protocol comprises enormous effort of international negotiation and bargaining policies and strategies. International cooperative negotiation solutions can be reached if all negotiation partner and player expect improved results in comparison to a non cooperative approach and independent initiatives controlled by pure self interests. More precisely, individual nations will not cooperate in order to reach a common target if the difference of net benefits by non cooperative and cooperative strategies is very high. Whether an agreement can be reached depends on the opportunities to reduce interest conflicts towards a minimum agreement, a bargaining situation contains opportunities to collaborate for mutual benefits. As real negotiation processes demonstrate, a full agreement of all players is unlikely to exist, more realistic seems that partial coalitions or unilateral action can take place as an alternative.
This paper investigates different international climate change negotiation games of cooperation and non cooperation behaviour by a global general equilibrium model and compares non cooperative initiatives forced by pure self interest against cooperative agreements among subgroups in form of small partial coalition games. Some player can benefit from actions of self enforced initiatives by other player or by partial coalition strategies due to the free rider principle, whereas others loose by remaining countries acting unilaterally. Non cooperative games induce welfare losses mainly to the unilateral acting player while free rider gain significantly.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Not published
By/In: Oldenburg University
Date: 2001
Created: (5/15/2001)
Updated: Hertel, T. (5/25/2001)
Visits: 1,886
- Climate change policy

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