Arbeitspapier

Potentially harmful international cooperation on global public good provision

Recent international climate negotiations suggest that complete agreements are unlikely to materialize. Instead, partial cooperation between like-minded countries appears a more likely outcome. In this paper we analyze the effects of such partial cooperation between like-minded countries. In doing so, we link the literature on partial cooperation with so-called matching approaches. Matching schemes are regarded as providing a promising approach to overcome undersupply of public goods like climate protection. The functioning of matching mechanisms in a setting with an incomplete agreement, i.e. a contract where only a subset of the players participates, has however not been investigated yet. This paper fills this research gap by analyzing incomplete matching agreements in the context of international climate protection. We analyse their effect on both welfare and the global climate protection level. We show that matching coalitions may bring about a decline in global public good provision and a reduction in the welfare of outsiders.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 3891

Classification
Wirtschaft
Bargaining Theory; Matching Theory
Public Goods
Climate; Natural Disasters and Their Management; Global Warming
Subject
coalition formation
public goods
matching
Pareto optimality
partial cooperation
Klimaschutz
Umweltabkommen
Internationale Zusammenarbeit
Verhandlungen
Matching
Öffentliches Gut
Pareto-Optimum
Theorie

Event
Geistige Schöpfung
(who)
Buchholz, Wolfgang
Cornes, Richard
Rübbelke, Dirk
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2012

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Buchholz, Wolfgang
  • Cornes, Richard
  • Rübbelke, Dirk
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2012

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