This paper studies within a multi-country model with international trade the stability of international environmental agreements (IEAs) when countries regulate carbon emissions either by taxes or caps. Regardless of whether coalitions play Nash or are Stackelberg leaders the principal message is...

In a Nash equilibrium of voluntary participation games in international environmental agreements, the optimal surplus sharing rules, proposed by Eyckmans and Finus (2004) and Weikard (2009), incentivize more countries to participate in the agreements. We examine how robust this desirability of...