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Research cooperation and international standards in a model of coalition stability


Lessmann,  Kai
IMPRS on Earth System Modelling, MPI for Meteorology, Max Planck Society;

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Lessmann, K., & Edenhofer, O. (2011). Research cooperation and international standards in a model of coalition stability. Resource and Energy Economics, 33(1), 36-54. doi:10.1016/j.reseneeco.2010.01.001.

Suggestions on international cooperation in climate policy beyond 2012 include substituting or complementing international environmental agreements (IEA) with technology-oriented agreements (TOA). We look at the impact of TOA on environmental cooperation in a framework of coalition stability. Using a numerical model, we analyze the differences of several TOA and how they interact. We find that participation in and environmental effectiveness of the IEA are raised less effectively when the TOA focuses on research cooperation in mitigation technology rather than cooperation on augmenting productivity in the private good sector. This is due to the former having an effect on all actors via emissions, whereas effects of the latter are exclusive to research partners. For the same reason, we find that restricting research cooperation to the coalition is only credible when it focuses on productivity. Technology standards that reduce the emission intensity of production are unlikely to raise participation by themselves and may suffer from inefficiencies. However, these disadvantages do not apply when standards are implemented as a complementary instrument. Separately negotiated technology standards may hence facilitate participation in an IEA without adding to its complexity. (C) 2010 Elsevier B.V. All rights reserved.