Strategic Delegation and International Permit Markets: Why Linking May Fail

• DOI: 10.2139/ssrn.3001818
• Publication Date: 2017-09-06T21:36:46Z
• Authors: Wolfgang Habla; Ralph Winkler
• Keywords: Delegation

We analyse a principal-agent relationship in the context of international climate policy. Principals two countries first decide whether to merge domestic emission permit markets an market, then delegate supply agent. find that principals select agents caring less for environmental damages than they do themselves case market regime, while opt self-representation markets. This strategic delegation incentive renders linking attractive and constitutes novel explanation reluctance establish non-cooperative