Coalition Formation and the Ancillary Benefits of Climate Policy

Several studies found ancillary benefits of environmental policy to be of considerable size. These additional private benefits imply not only higher cooperative but also noncooperative abatement targets. However, beyond these largely undisputed important quantitative effects, there are qualitative and strategic implications associated with ancillary benefits: climate policy is no longer a pure but an impure public good. In this paper, we investigate these implications in a setting of non-cooperative coalition formation. In particular, we address the following questions. 1) Do ancillary benefits increase participation in international environmental agreements? 2) Do ancillary benefits raise the success of these treaties in welfare terms?

[1]  S. Barrett.  Self-enforcing international environmental agreements , 1994 .

[2]  Matthew J. Kotchen,et al.  Impure public goods and the comparative statics of environmentally friendly consumption , 2005 .

[3]  Jeffrey A. Dubin,et al.  How Markets for Impure Public Goods Organize: The Case of Household Refuse Collection , 1987 .

[4]  Corruption and Political Interest: Empirical Evidence at the Micro Level , 2009 .

[5]  Johan Eyckmans,et al.  Coalition formation in a global warming game: how the design of protocols affects the success of environmental treaty-making , 2008 .

[6]  Elena Bellini,et al.  Measuring the Impact of Tourism Upon Urban Economies: A Review of Literature , 2008 .

[7]  R. Cornes,et al.  The theory of externalities, public goods, and club goods: Externalities and private information , 1996 .

[8]  Matthew J. Kotchen,et al.  Green Markets and Private Provision of Public Goods , 2006, Journal of Political Economy.

[9]  Michael Hoel,et al.  International environment conventions: The case of uniform reductions of emissions , 1992, Environmental and Resource Economics.

[10]  Effrosyni Diamantoudi,et al.  Stable International Environmental Agreements: An Analytical Approach , 2002 .

[11]  David G. Davies,et al.  The Theory of Public Finance , 1960 .

[12]  Elena Bellini,et al.  Effects of Tourism Upon the Economy of Small and Medium-Sized European Cities: Cultural Tourists and 'The Others' , 2008 .

[13]  Gideon Kruseman,et al.  Institutions and Forest Management: A Case Study from Swat, Pakistan , 2008 .

[14]  Pietro Caratti,et al.  Analysing Regional Sustainability Through a Systemic Approach: The Lombardy Case Study , 2008 .

[15]  Todd Sandler,et al.  The comparative static properties of the impure public good model , 1994 .

[16]  P. Ekin,et al.  The secondary benefits of CO2 abatement: How much emission reduction do they justify? , 1996 .

[17]  Kirk R. Smith,et al.  Co-benefits of climate mitigation and health protection in energy systems: scoping methods. , 2008, Annual review of public health.

[18]  Maurizio Bussolo,et al.  CLEARING THE AIR IN INDIA: THE ECONOMICS OF CLIMATE POLICY WITH ANCILLARY BENEFITS , 2001 .

[19]  Henk Folmer,et al.  The International Yearbook of Environmental Resource Economics 2001/2002 , 2001 .

[20]  Paul Ekins,et al.  How large a carbon tax is justified by the secondary benefits of CO2 abatement , 1996 .

[21]  Michael Finus,et al.  Modesty May Pay , 2008 .

[22]  D. Rübbelke,et al.  Ancillary Benefits of Climate Policy , 2003 .

[23]  K. Palmer,et al.  Ancillary benefits of reduced air pollution in the US from moderate greenhouse gas mitigation policies in the electricity sector , 2003 .

[24]  Anna Alberini,et al.  Redeveloping derelict and underused historic city areas: evidence from a survey of real estate developers , 2008 .

[25]  Katrin Millock,et al.  The Factors Behind CO2 Emission Reduction in Transition Economies , 2008 .

[26]  Angelo Antoci,et al.  Structural Change, Environment and Well-Being: Interactions Between Production and Consumption Choices of the Rich and the Poor in Developing Countries , 2008 .

[27]  R. Venterea.  Climate Change 2007: Mitigation of Climate Change , 2009 .

[28]  Michael Finus.  Game Theoretic Research on the Design of International Environmental Agreements: Insights, Critical Remarks, and Future Challenges , 2008 .

[29]  Kristin Aunan,et al.  Benefits and costs to China of a climate policy , 2007, Environment and Development Economics.

[30]  Hu Tao,et al.  Domestic Environmental Benefits of China's Energy-Related CDM Potential , 2006 .

[31]  Benno Torgler,et al.  Corruption and Political Interest: Empirical Evidence at the Micro Level , 2009 .

[32]  David Pearce,et al.  POLICY FRAMEWORKS FOR THE ANCILLARY BENEFITS OF CLIMATE CHANGE POLICIES , 2000 .

[33]  D. Rübbelke,et al.  Climate policy and ancillary benefits: A survey and integration into the modelling of international negotiations on climate change , 2008 .

[34]  J. Bruce,et al.  Climate change, 1995 : economic and social dimensions of climate change , 1997 .

[35]  Santiago J. Rubio,et al.  Self-Enforcing International Environmental Agreements Revisited , 2006 .

[36]  Scott Barrett,et al.  Climate Treaties and "Breakthrough" Technologies , 2006 .

[37]  Michele Moretto,et al.  Managing Migration Through Quotas: An Option-Theory Perspective , 2008 .

[38]  O. Davidson,et al.  Climate change 2001 : mitigation , 2001 .

[39]  Todd Sandler,et al.  EASY RIDERS, JOINT PRODUCTION, AND PUBLIC GOODS* , 1984 .

[40]  Santiago J. Rubio Jorge,et al.  Self-enforcing international environmental agreements revisited , 2006 .

[41]  Xavier Pautrel,et al.  ENVIRONMENTAL POLICY, EDUCATION AND GROWTH: A REAPPRAISAL WHEN LIFETIME IS FINITE , 2008, Macroeconomic Dynamics.

[42]  J. Andreoni.  Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence , 1989, Journal of Political Economy.

[43]  P. Bosch,et al.  Climate change 2007 - mitigation of climate change , 2007 .

[44]  D. Rübbelke.  An analysis of differing abatement incentives , 2003 .

[45]  THE ANCILLARY BENEFITS AND COSTS OF CLIMATE CHANGE MITIGATION : A CONCEPTUAL FRAMEWORK , 2000 .

[46]  Jasone Cenoz,et al.  Language Diversity in Urban Landscapes: An Econometric Study , 2008 .

[47]  Todd Sandler,et al.  AGRICULTURAL RESEARCH EXPENDITURES IN THE UNITED STATES: A PUBLIC GOODS PERSPECTIVE , 1994 .

[48]  Kerstin Schneider,et al.  Incentives to Participate in an International Environmental Agreement , 1997 .

[49]  Federico Dini,et al.  The Determinants of Suppliers' Performance in E-Procurement: Evidence from the Italian Government's E-Procurement Platform , 2008 .

[50]  Li Yun,et al.  Energy and emission scenarios for China in the 21st century—exploration of baseline development and mitigation options , 2003 .

[51]  J. Andreoni.  Toward a Theory of Charitable Fundraising , 1998 .

[52]  Alistair Ulph.  Stable International Environmental Agreements with a Stock Pollutant, Uncertainty and Learning , 2004 .

[53]  Carlo Carraro,et al.  International environmental negotiations : strategic policy issues , 1997 .

[54]  Ivana Chlapcová.  Environment and Statecraft: The Strategy of Environmental Treaty-making , 2006 .

[55]  C. Carraro,et al.  Strategies for the international protection of the environment , 1993 .

[56]  Matthew J. Kotchen,et al.  Private Provision of Environmental Public Goods: Household Participation in Green-Electricity Programs , 2007 .

[57]  Charles D. Kolstad,et al.  Systematic uncertainty in self-enforcing international environmental agreements , 2007 .

[58]  J. Murdoch,et al.  Nash-Cournot or Lindahl Behavior?: An Empirical Test for the NATO Allies , 1990 .

[59]  D. O’Connor,et al.  Climate Policy without Tears CGE-Based Ancillary Benefits Estimates for Chile , 1999 .