Environmental Agreements under Asymmetric Information

A-Tier
Journal: Journal of the Association of Environmental and Resource Economists
Year: 2020
Volume: 7
Issue: 3
Pages: 455 - 481

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In a two-country model, I investigate the role of a pre-negotiation phase as an information-sharing and certification device to restore the feasibility of an efficient environmental agreement when countries’ abatement costs are private information and participation is voluntary. When uncertainty regarding abatement costs is high, the welfare gains of reducing information asymmetries and reaching the first-best agreement will be sufficiently large to design budget-balanced transfers that compensate both countries for the loss of the information rent they could obtain by staying privately informed. Both countries then accept to share and certify their abatement costs during the pre-negotiation phase.

Technical Details

RePEc Handle
repec:ucp:jaerec:doi:10.1086/707653
Journal Field
Environment
Author Count
1
Added to Database
2026-01-29