International environmental agreements under uncertainty: does the veil of uncertainty help?

Arbeitspapier

Na and Shin (1998) showed that the veil of uncertainty can be conducive to the success of self-enforcing international environmental agreements. Later papers confirmed this negative conclusion about the role of learning. In the light of intensified research efforts worldwide to reduce uncertainty about the environmental impact of emissions and the cost of reducing them, this conclusion is intriguing. The purpose of this paper is threefold. First, we analyze whether the result carries over to a more general setting without restriction on the number of players and which considers not only no and full learning but also partial learning. Second, we test whether the conclusion also holds if there is uncertainty about abatement costs instead of uncertainty about the benefits from global abatement. Third, we propose a transfer scheme that mitigates the possible negative effect of learning and which may even transform it into a positive effect.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Nota di Lavoro ; No. 2010,79

Classification and Topics

• Classification: Wirtschaft ; Noncooperative Games ; Externalities ; Criteria for Decision-Making under Risk and Uncertainty ; Public Goods ; Renewable Resources and Conservation: General
• Subject: Transnational Cooperation ; Self-enforcing International Environmental Agreements ; Uncertainty ; Learning

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Finus, Michael ; Pintassilgo, Pedro
• Event: Veröffentlichung
• (who): Fondazione Eni Enrico Mattei (FEEM)
• (where): Milano
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/43561
• Last update: 10.03.2025, 11:42 AM CET