Emission allowances are sometimes distributed for free in an early phase of a cap-and-trade scheme to reduce adverse effects on the profitability of firms. This paper investigates whether grandfathering can also be used to avert the relocation of firms to countries with lower carbon prices. We...

We consider games where individual contributions are costly but beneficial to other players, so that contributing nothing is a dominant strategy. Considering that players may be unable to write binding agreements but may make binding unilateral commitments that are conditional on others'...

As the Copenhagen Accord indicates, most of the international community agrees that global mean temperature should not be allowed to rise more than two degrees Celsius above preindustrial levels to avoid unacceptable damages from climate change. The scientific evidence distilled in the Fourth...

A formal framework for the treatment of hierarchical coalition formation and hierarchical agreements under both the bargaining and blocking approaches to coalition formation is introduced, and some first positive results on the possibility of full agreement and the efficiency of hierarchical...

Using Putnam’s two‐level game approach, we discuss the influence of domestic players that can veto the ratification of international environmental agreements on the breadth and depth of such treaties. We first show that in a symmetric Barrett‐type payoff model, veto-players can restrict...

Societal transformations are necessary to address critical global challenges, such as mitigation of anthropogenic climate change and reaching UN sustainable development goals. Recently, social tipping processes have received increased attention, as they present a form of social change whereby a...

We present typical scenarios and general insights from a novel dynamic model of farsighted climate coalition formation involving market linkage and cap coordination, using a simple analytical model of the underlying cost-benefit structure. In our model, the six major emitters of CO2 can link...

We present typical scenarios and general insights from a novel dynamic model of farsighted climate coalition formation involving market linkage and cap coordination, using a simple analytical model of the underlying cost-benefit structure. In our model, the six major emitters of CO2 can link...