One of the proposed alternatives to Kyoto’s cap-and-trade approach is a regime based on an internationally harmonized carbon tax. In this paper, we consider and compare the enforcement problems associated with a tax regime and a cap-and-trade regime, respectively. The paper tries to convey two...

The notion of renegotiation-proof equilibrium has become a cornerstone in non-cooperative models of international environmental agreements. Applying this solution concept to the infinitely repeated N-person Prisoners' Dilemma generates predictions that contradict intuition as well as...

The United States, the world's largest emitter of greenhouse gases, is not going to ratify the Kyoto Protocol in the foreseeable future. Yet, a number of countries have decided to stay on the Kyoto track. Four main explanations for this apparent puzzle are considered. The first is that remaining...

We provide experimental evidence of self-serving fairness ideals in a dictator game design that includes treatments where funds can be transferred in two ways to the one player and in one way to the other. Two methods for transferring funds to the recipient produce the same results as the...

Elected representatives serving their final period face only weak incentives to provide costly effort. However, overlapping generations (OLG) models suggest that exit prizes sustained by trigger strategies can induce representatives in their final period to provide such effort. We evaluate this...

Elected representatives serving their final period face only weak incentives to provide costly effort. However, overlapping generations (OLG) models suggest that exit prizes sustained by trigger strategies can induce representatives in their final period to provide such effort. We evaluate this...

We identify and explain significant differences between the compliance enforcement systems of three cap-and-trade programmes: the European Union's Emission Trading Scheme (EU-ETS), the US SO2 emission trading programme and the Kyoto Protocol. Because EU-ETS's compliance enforcement system is...

European integration has grown increasingly differentiated. EU member countries now integrate at different speeds and frequently resort to opt-out clauses, while occasionally voicing deep discontent with the direction of the integration process. Nevertheless, European integration essentially...