The Stability of International Environmental Coalitions with Farsighted Countries: Some Theoretical Observations

We study a three-country model of international environmental agreements where countries may choose either to limit their emissions or to behave noncooperatively. First, we provide a taxonomy of various kinds of strategic situations. Then, by applying some recently developed game-theoretic techniques, we show that if countries are ‘farsighted’ then there is scope for self- enforcing cooperation in several such situations.