Cees Withagen

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Papers by Cees Withagen

Environmental Regulation and International Trade: Empirical Results for the Manufacturing Industry in Germany, the Netherlands and the US, 1972 - 1992

Social Science Research Network, 2004

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95/05298 Environmental regulation and international trade

Fuel and Energy Abstracts, Sep 1, 1995

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On the sustainable program in Solow's model

We show that our general result (Withagen and Asheim ) on the converse of Hartwick's rule also ap... more

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Members, Joiners, Free-Riders, Supporters

Social Science Research Network, 2015

We augment the standard cartel formation game from non-cooperative coalition theory, often applie... more We augment the standard cartel formation game from non-cooperative coalition theory, often applied in the context of international environmental agreements on climate change, with the possibility that singletons support coalition formation without becoming coalition members themselves. Rather, their support takes the form of a monetary transfer to the coalition, which increases the members' payoffs, and thereby provides an incentive for other singletons to join the coalition. We show that, under mild conditions on the costs and benefits of contributing to the public good (i.e. abatement of CO2 emissions), supporters exist in equilibrium. The existence of supporters increases the size of stable coalitions, increases abatement of CO2 emissions, and increases payoffs to each of four types of agents: members, joiners, free-riders, and supporters.

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Optimal Exploitation and Investments in a Small Open Economy

Springer eBooks, 1985

One of the conclusions drawn from the survey of the literature on exhaustible resources in open e... more One of the conclusions drawn from the survey of the literature on exhaustible resources in open economies, was that a closer examination of the problem of simultaneous determination of optimal exploitation of the resource and the optimal savings rate was in order. This is the purpose of the present chapter. It will turn out that the results heavily depend on whether or not certain markets are in existence and on the expectations the economy under consideration holds with respect to the prices that come about on these markets. This observation gives rise to various models, to be dealt with subsequently. We shall outline here some of the characteristics the economy will always (i.e. in all models) be assumed to exhibit and we shall present a description of the environments in which the economy may find itself. Essentially the models are special cases of the general model presented in chapter 2 section 2.2.1.

Spatial Evolution of Social Norms in a Common-Pool Resource Game

Springer eBooks, 2007

We study the conditions for the emergence of cooperation in a spatial common-pool resource (CPR) ... more We study the conditions for the emergence of cooperation in a spatial common-pool resource (CPR) game. We consider three types of agents: cooperators, defectors and enforcers. The role of enforcers is to punish defectors for overharvesting the resource. Agents are located on a circle and they only observe the actions of their two nearest neighbors. Their payoffs are determined by both local and global interactions and they modify their actions by imitating the strategy in their neighborhood with the highest average payoffs on average. Using theoretical and numerical analysis, we find a large diversity of equilibria to be the outcome of the game. In particular, we find conditions for the occurrence of equilibria in which the three strategies coexist. We also derive the stability of these equilibria. Finally, we show that introducing resource dynamics in the system favors the occurrence of cooperative equilibria.

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Innovation and Environmental Stringency: The Case of Sulfur Dioxide Abatement

Social Science Research Network, 2005

Copyright and moral rights for the publications made accessible in the public portal are retained... more Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. -Users may download and print one copy of any publication from the public portal for the purpose of private study or research -You may not further distribute the material or use it for any profit-making activity or commercial gain -You may freely distribute the URL identifying the publication in the public portal If you believe that this document breaches copyright, please contact us providing details, and we will remove access to the work immediately and investigate your claim.

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Tradeable Emission Permits in a Federal System

Documentos de trabajo ( Centro de Estudios Andaluces ), 2004

De groene Kuznets curve voor China: tussen hoop en mythe

Evolution over Networks: Applications to Economics and Resource Management

Exhaustible Resources and International Trade, a Survey

Lecture Notes in Economics and Mathematical Systems, 1985

It has been pointed out in the preceding chapter that the public’s interest in exhaustible resour... more It has been pointed out in the preceding chapter that the public’s interest in exhaustible resources experienced an enormous upswing at the beginning of the seventies when the world suffered from the oil crisis and when the Report of the Club of Rome was broadly disseminated. Since that time economic theory has been enriched by an abundant literature. We refer to Peterson and Fisher (1977) and Withagen (1981 a) for surveys and to Dasgupta and Heal (1978) for a standard introduction. In view of the origins of the recent interest it is remarkable that, at least in economic theory, the international trade aspect has only received minor attention. Admittedly the Club of Rome put special emphasis on the global resource problem and if one is interested in the problem of how the world as an entity can meet for example the energy scarcity, international markets do not necessarily enter into the analysis. However, the oil crisis revealed the vulnerability of some parts of the world through international trade problems. Nevertheless some work has been done here and it is the objective of this chapter to survey this. Apart from the merits such a survey has on its own by systematically arranging the results obtained thus far, it also provides an opportunity to point at some important questions that are not yet settled, and hence serves as a starting point for further research.

A General Equilibrium Model of International Trade in Exhaustible Resources

Lecture Notes in Economics and Mathematical Systems, 1985

In the preceding two chapters of the present monograph we have been studying international trade ... more In the preceding two chapters of the present monograph we have been studying international trade in exhaustible resources from a partial equilibrium point of view. It has been remarked in several places that a general equilibrium type analysis would be more appropriate. This has also been stressed in the survey of the existing literature in chapter 2. Here we shall adopt the approach proposed: the aim of the present chapter is to study general equilibrium in a world with two open economies, both in the possession of a natural resource. The plan of the chapter is as follows. In section 5.2 the model is described. In 5.3 we derive the necessary conditions for equilibrium and give some preliminary results. Section 5.4 is devoted to the characterization of general equilibrium. In 5.5 the outcomes will be compared with those obtained in earlier studies and the conclusions and some recommendations for further research are given.

Existence of general equilibria in economies with natural exhaustible resources and an infinite horizon

Memorandum COSOR, 1988

This paper establishes the existence of a general equilibrium for economies with natural exhausti... more This paper establishes the existence of a general equilibrium for economies with natural exhaustible resources and an infinite horizon. It is argued that the traditional methods for proving existence in economies with an infinite dimensional commodity space cannot be invoked here and an alternative proof is provided. Example 1. Consider an economy with one producer and one consumer. The production set is *The authors are indebted to Donald Brown and Truman Bewley for their stimulating remarks. Any errors are the authors' sole responsibility.

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Local and Global Interactions in an Evolutionary Resource Game

Social Science Research Network, 2005

Conditions for the emergence of cooperation in a spatial common-pool resource game are studied. T... more Conditions for the emergence of cooperation in a spatial common-pool resource game are studied. This combines in a unique way local and global interactions. A fixed number of harvesters are located on a spatial grid. Harvesters choose among three strategies: defection, cooperation, and enforcement. Individual payoffs are affected by both global factors, namely, aggregate harvest and resource stock level, and local factors, such as the imposition of sanctions on neighbors by enforcers. The evolution of strategies in the population is driven by social learning through imitation. Numerous types of equilibria exist in these settings. An important new finding is that clusters of cooperators and enforcers can survive among large groups of defectors. We discuss how the results contrast with the non-spatial, but otherwise similar, game of Sethi and Somanathan (1996).

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Spatial patterns of biodiversity conservation in a multiregional general equilibrium model

Resource and Energy Economics, May 1, 2009

In this paper we propose and analyse a formal model to study the interaction between human popula... more

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Optimal Environmental Policy Differentials in Open Economies under Emissions Constraints

Journal of Economics, Mar 22, 2007

Is there a case for preferential treatment of the exposed sector in an economy when compliance to... more Is there a case for preferential treatment of the exposed sector in an economy when compliance to an aggregate emissions constraint induced by an international environmental agreement is mandatory? This question is being debated in many countries in the context of the implementation of the Kyoto Protocol. We address the issue in a general equilibrium framework and theoretically cover several market structures, including perfect competition, the large country case and oligopoly. We identify the conditions under which preferential treatment of the exposed sector is not warranted from the point of view of maximizing social welfare. In addition, we demonstrate that in the case of oligopoly, instituting a more stringent environmental policy on the exposed sector might be profitenhancing for this sector. This finding lends theoretical support to a specific interpretation of the Porter hypothesis.

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The Pollution Haven Hypothesis, a Dynamic Perspective

Revue économique, Jan 26, 2010

Copyright and moral rights for the publications made accessible in the public portal are retained... more Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. • Users may download and print one copy of any publication from the public portal for the purpose of private study or research. • You may not further distribute the material or use it for any profit-making activity or commercial gain • You may freely distribute the URL identifying the publication in the public portal ? If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim.

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The optimal depletion of exhaustible resources: A complete characterization

Resource and Energy Economics, Sep 1, 2011

We provide the closed form solution to the Dasgupta-Heal-Solow-Stiglitz (DHSS) model. The DHSS mo... more We provide the closed form solution to the Dasgupta-Heal-Solow-Stiglitz (DHSS) model. The DHSS model is based on the seminal articles Dasgupta and Heal (Rev. Econ. Stud.,1974), Solow (Rev. Econ. Stud.,1974) and Stiglitz (Rev. Econ. Stud.,1974) and describes an economy with two assets, man-made capital and a nonrenewable resource stock. We explicitly characterize, for such an economy, the dynamics along the optimal trajectory of all the variables in the model and from all possible initial values of the stocks. We use the analytical solution to prove several properties of the optimal consumption path. In particular, we show that the initial consumption under a utilitarian criterion starts below the maximin rate of consumption if and only the resource is abundant enough and that under a utilitarian criterion, it is not necessarily the present generation that bene…ts most from a windfall of resources.

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Climate and Migration

WORLD SCIENTIFIC eBooks, Dec 1, 2021

We review some of the recent estimates of the effect of weather and climate on migration, and art... more We review some of the recent estimates of the effect of weather and climate on migration, and articles examining the historical evidence of such links. We identify four issues that have received less attention in previous reviews on the topic. The first one is general equilibrium effects of climate change and migration. The second one concerns accounting for thresholds in the climate-migration relationship. Some of the articles that we review incorporate non-linear effects, but only in the relation between income and migration, and in the relation between weather, climate and migration. Other thresholds are not yet incorporated into the literature. A third issue where much work remains to be done relates to climate change and conflict, and their influence on migration. Finally, we conclude with some reflections on the implications of the results for economic development. November 13, 2020 12:27 ws-rv9x6 Book Title "Migration chapter Millock Withagen with abstract" page 3 Climate and Migration 3 mate variability, as well as projections of future flows. Marchiori, Maystadt and Schumacher (2012) estimate that temperature and rainfall anomalies caused a total displacement of 5 million people in Africa during the period 1960-2000, i.e., a minimum of 128,000 people every year. The projections based on their estimations predict 11.8 million additional migrants in Sub-Saharan Africa by 2099. For India, Dallmann and Millock (2017) find that an increase in the frequency of droughts leads to an increase in the bilateral inter-state migration rate of 1.5 % on average, and by 1.7 % in agricultural states. Applying these estimates to past migrant flows over 5 years, they find 11.96 million additional migrants due to drought, or a yearly mean of 2.4 million displaced by drought alone during 1996 to 2001. For comparison, the IDMC states that 3.7 million people were displaced due to natural disasters in India in 2015 alone. International studies give estimates of the changes in current migration rates that may be expected from increases in temperature. estimate that each 1 • C increase in temperature implies a 4.7% increase in outmigration from the top 25% agricultural countries, whereas Backhaus, Martinez-Zarzoso and Muris (2015) estimate that a 1 • C higher average temperature in the countries of origin is associated with a 3.3 % increase in migration flows between a country pair over one year. This estimate is a one-year elasticity and only for countries with a large share of value added in agriculture. Cattaneo and Peri (2016) separate the response by income status and estimate that each one percent increase in temperature increases international migration rates by 4% in middle-income countries, whereas it decreases emigration rates in poor countries by 16%, ceteris paribus. These numbers imply that the migration rate from middle income countries would increase from 4.2% to 5%, whereas the migration rate from poor countries would decrease from 1.8% to 0.4%. When assessing these numbers, it is useful to recall that the current migrant stock constitutes 3.5% of the world's population (International Organization for Migration, 2020). Finally, Missirian and Schlenker (2017), who use UNHCR data on asylum demands specifically, project an increase of 28% in asylum applications to the European Union by 2099 (98,000 additional applications) under Representative Concentration Pathway (RCP) scenario 4.5 and by 188% (660,000 more) under RCP 8.5. Following this overview of some of the estimates of the role of past weather variability and climatic factors in migration and the projected future migration flows, we will devote this chapter to review and discuss a few issues that have not received much attention in the literature so far, and

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Theory of natural exhaustible resources : The cartel-versus-fringe model reconsidered

Other publications TiSEM, 1989

In this paper the binding-contracte open-loop v~n Stackelberg equilibrium in the cartel-vereus-fr... more In this paper the binding-contracte open-loop v~n Stackelberg equilibrium in the cartel-vereus-fringe model of the eupply side of a market for a raw material from an exhaustible natural resource is reconsidered. It is shown that the equilibrium for this model differs from what the previoua literature on this model (e.g. Ulph and Folie (1981), Newbery (1981) and Ulph (1982)) suggests. The equilibrium is solved for by using optimal control techniques and it turns out that the previous literature should be corrected in two respects. Firstl,y, the marginal production costs for the cartel are not treated correctly and secondly, the resulting equilibrium price path may not be continuous, as ia implicitly assumed by previous authors. For some values oi the parameters the equilibrium is still time-inconsistent and thia turns out to be so in almost the same cases as in the previous literature. The time-inconsistency is one reason to reject the open-loop von Stackelberg equilibrium concept for this model. Another reason is that for plausible parameter values the equilibrium price path turns out to be discontinuoue. Especially in markets for raw materials such as crude oil, this will Iead to speculation. In that case the assumption that the demand only depends on the current price level is not valid anymore.

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