Economics Seminar（2015-13）

Topic: Overlapping International Green R&D Agreements?

Speaker:Emilson C. D. Silva

Affiliation:University of Alberta

Time: Tuesday, June 9 from 2:00-3:30pm

Location: Room 217, Guanghua Building 2

Abstract:

We examine the formation of multilateral, hub-and-spoke and bilateral green technology international agreements. Green R&D provision produces two types of positive externalities: a global public good (i.e., reduction of CO2 emissions) and knowledge spillovers in technology agreements. We utilize the perfectly-coalition-proof-Nash equilibrium (PCPNE) concept to refine the set of Nash equilibria. Multilateral and hub-and-spoke coalitional structures are PCPNE, even in large economies containing 197 nations, in the absence of income transfers for different values of attrition costs. With income transfers, fully participated multilateral coalitional structures are not stable; however, the size of the stable coalition increases as the economy expands.

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