Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Bergen, Department of Economics

No 06/03: Do voluntary international environmental agreements work?

Espen Bratberg (), Sigve Tjøtta () and Torgeir Øines ()
Additional contact information
Espen Bratberg: University of Bergen, Department of Economics, Postal: Hermann Fossgt. 6, N-5007 Bergen, Norway
Sigve Tjøtta: University of Bergen, Department of Economics, Postal: Hermann Fossgt. 6, N-5007 Bergen, Norway
Torgeir Øines: Bodø Regional College

Abstract: We consider the effects of international environmental agreements, using the Sofia Protocol on the reduction of nitrogen oxides. Our analysis utilizes panel data from 25 European countries for the period 1980–96. We divide these countries into “participants” and “non-participants”—that is, those that did and those that did not ratify the Sofia Protocol, respectively. Using a difference in difference estimator, we find that signing the treaty has a significant positive impact on emission reduction. The yearly reduction is approximately 2.4 percent greater than it would have been without the Sofia Protocol.

Keywords: international environmental agreements; public goods; evaluation

JEL-codes: D62; H49; Q28

26 pages, June 7, 2003

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