Sticks and Carrots for the Design of International Climate Agreements with Renegotiations.

This paper examines stability of international climate agreements for carbon abatement under an optimal transfer rule and renegotiations. The optimal transfer rule suggested to stabilise international environmental agreements (Weikard 2005, Carraro, Eyckmans and Finus 2006) is no longer optimal when agreements are renegotiated. Conditions for optimal self-enforcing sequences of agreements are determined.

Weikard, H.P. and R. Dellink. "Sticks and Carrots for the Design of International Climate Agreements with Renegotiations." Feem Nota di Lavoro 15.2008, Apr 2008.