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Participation games and international environmental agreements: a nonparametric model AgEcon
Karp, Larry S.; Simon, Leo K..
We examine the size of stable coalitions in a participation game that has been used to model international environmental agreements, cartel formation, R&D spillovers, and monetary policy. The literature to date has relied on parametric examples; based on these examples, a consensus has emerged that in this kind of game, the equilibrium coalition size is small, except possibly when the potential benefits of cooperation are also small. In this paper, we develop a non-parametric approach to the problem, and demonstrate that the conventional wisdom is not robust. In a general setting, we identify conditions under which the equilibrium coalition size can be large even when potential gains are large. Contrary to previously examined leading special cases, we...
Tipo: Working Paper Palavras-chave: Stable coalitions; Participation game; International Environmental Agreement; Climate agreement; Trans-boundary pollution; Investment spillovers; Environmental Economics and Policy.
Ano: 2012 URL: http://purl.umn.edu/123717
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Technology Diffusion, Abatement Cost, and Transboundary Pollution AgEcon
Heal, Geoffrey; Tarui, Nori.
This paper studies countries’ incentives to develop advanced pollution abatement technology when technology may spillover across countries and pollution abatement is a global public good. We are motivated in part by the problem of global warming: a solution to this involves providing a global public good, and will surely require the development and implementation of new technologies. We show that at the Nash equilibrium of a simultaneous-move game with R&D investment and emission abatement, whether the free rider effect prevails and under-investment and excess emissions occur depends on the degree of technology spillovers and the effect of R&D on the marginal abatement costs. There are cases in which, contrary to conventional wisdom, Nash...
Tipo: Working or Discussion Paper Palavras-chave: International Environmental Agreement; Pollution Abatement Costs; Endogenous Technological Change; Environmental Economics and Policy; Research and Development/Tech Change/Emerging Technologies; Q50; H87; D70.
Ano: 2008 URL: http://purl.umn.edu/46653
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International Environmental Agreements: Emissions trade, safety valves and escape clauses AgEcon
Karp, Larry S.; Zhao, Jinhua.
We explain how the structure of multi-national or multi-regional environmental agreements affect their chance of success. Trade in emissions permits has ambiguous and in some cases surprising effects on both the equilibrium level of abatement, and on the ability to persuade nations or regions to participate in environmental agreements. An escape clause policy and a safety valve policy have essentially the same properties when membership in environmental agreement is pre-determined, but they create markedly different effects on the incentives to join such an agreement. The two policies lead to a qualitative difference in the leverage that a potential member of the agreement exercises on other members.
Tipo: Working or Discussion Paper Palavras-chave: Kyoto Protocol; Escape clause; Emissions trade; Cost uncertainty; Participation game; International Environmental Agreement; Environmental Economics and Policy; Research Methods/ Statistical Methods; Resource /Energy Economics and Policy; Risk and Uncertainty; C72; H4; Q54.
Ano: 2009 URL: http://purl.umn.edu/51611
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International environmental agreements with mixed strategies and investment AgEcon
Hong, Fuhsai; Karp, Larry S..
We modify a canonical participation game used to study International Environmental Agreements (IEA), considering both mixed and pure strategies at the participation stage, and including a prior cost-reducing investment stage. The use of mixed strategies at the participation stage reverses a familiar result and also reverses the policy implication of that result: with mixed strategies, equilibrium participation and welfare is higher in equilibria that involve higher investment.
Tipo: Working Paper Palavras-chave: International Environmental Agreement; Climate agreement; Participation game; Investment; Mixed strategy; Environmental Economics and Policy; C72; H4; Q54.
Ano: 2012 URL: http://purl.umn.edu/123719
Registros recuperados: 4
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