International Environmental Agreements with Endogenous or Exogenous Risk
Journal of the Association of Environmental and Resource Economists,
International Environmental Agreement, climate agreement, endogenous risk, exogenous risk, risk aversion, mixed strategy.
We examine the effect of endogenous and exogenous risk on the equilibrium (expected) membership of an International Environmental Agreement when countries are risk averse. Endogenous risk arises when countries use mixed rather than pure strategies at the participation g...