The Effectiveness of Environmental Matching Agreements among Asymmetric Countries

By Toshiyuki Fujita.

Published by The Sustainability Collection

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Article: Print $US10.00
Article: Electronic $US5.00

One remarkable feature of transboundary environmental problems is that there is no organization with supranational power to control anthropogenic pollutants. Hence international cooperation is essential to developing measures to protect the environment. We consider matching schemes as a model for international environmental agreements, and investigate their effectiveness in the game theoretic framework. In the first stage, after the rule of matching scheme is announced, each country simultaneously determines whether to accede to the agreement. In the second stage, it determines a flat abatement noncooperatively. Each signatory is imposed an additional abatement that depends on all countries’ flat abatements. The analysis of a matching game with asymmetric countries as players suggests the existence of a self-enforcing agreement leading to an efficient outcome, and thus shows that matching schemes are effective. For the current situation that it is difficult to prevent free-riding in international environmental agreements, the idea of matching could give us some clue.

Keywords: International Environmental Agreements, Matching Schemes, Noncooperative Game, Asymmetric Countries, Self-enforcement

The International Journal of Environmental, Cultural, Economic and Social Sustainability, Volume 7, Issue 5, pp.17-24. Article: Print (Spiral Bound). Article: Electronic (PDF File; 844.040KB).

Dr. Toshiyuki Fujita

Associate Professor, Faculty of Economics, Kyushu University, Fukuoka, Japan

Dr. Toshiyuki Fujita is an associate professor at the Faculty of Economics, Kyushu University in Japan. He received Ph.D. from University of Tokyo in Engineering. His major is Environmental Economics and Environmental Policy. His main research interest is the game theoretic analysis of international cooperation concerning the global environmental issues. He has published papers such as “Design of International Environmental Agreements under Uncertainty,” “Game of Pollution Reduction Investment under Uncertainty,” and “Incentive Mechanisms for the Development of a Low-carbon Society in Asia.”

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