Both Barrett (1991) and Hoel (1991) show that uniform solutions cannot guarantee that the IR constraint is satisfied. This drawback of uniform solutions dramatically reduces feasibility of uniform solutions. However, when uniform reductions are property specified, this conclusion is no longer...

Why did the climate negotiations in The Hague fail? Our contribution is to argue that the conflict between the European Union and the United States stems mainly from disagreement on the cost issue. We argue that three main concerns promoted by the European Union in The Hague, i.e. a 50% national...

The purpose of this article is to analyse whether the presence of surplus emission allowance trading jeopardizes the environmental target of an international environmental agreement. We argue that surplus emission allowance trading can be used as an implicit side-payment mechanism to actually...

CDM projects have large potentials but also face significant obstacles that have so far limited their applicability. Two serious problems that an effective contracting faces are the presence of private information and the lack of sufficiently precise output measures. In a principal-agent...

This paper considers a situation where a real risk exists that requires precautions, but the public mostly experiences the risk through infrequently occurring extreme events; this type of risk includes risk from climate change, international terrorism, natural calamities or financial crises. The...

Why has the EU been so eager to continue the climate negotiations? Can it be solely attributed to the <p> EU feeling morally obliged to be the main initiator of continued progress on the climate change <p> negotiations, or can industrial interests in the EU, at least partly, explain the behaviour of...</p></p>

The political economy idea developed by Ackerman and Hassler (1981) is the starting point of this <p> paper. It suggested that a coalition of environmentalists and industrialists successfully lobbied the <p> US Congress. More strict technology-based standards for new sources than existing sources was...</p></p>

This paper demonstrates how expectations about the design of regimes influence countries' actions before negotiating for agreements on international environmental problems. When a country is privately informed about own reduction costs, the preagreement emission level serves as a device to...