IEA model. We adopt the non-cooperative game framework referenced above to investigate abatement gains of self- enforcing partial coalitions in contrast with null-coalition and full-coalition behavior. The global profit function is defined as:
(1) Each nation bears the cost, Ci, of its own abatement, qi, while all nations share the benefits of reduc- tion of harm, Bi, from global abatement Q. In a stable partial coalition, members have a collective profit that is at least as high as the sum of their individual profits operating alone. However, the allocation of abatement levels within the coalition that maximizes the coalition profit might not result in a higher individual profit for each member compared to their profit if they left the coalition. To overcome this problem, a transfer payment scheme redistributes the net burden among members. The “burden-sharing” rule ensures that the profit each nation receives as a coalition member exceeds what they receive outside the coalition. Nations that xxxxx an amount greater than required under the agreement would receive a positive transfer, while nations that purchase permits are able to meet their abatement responsibilities under the agreement at a lower cost. Net transfers are zero-sum. Xxxxxxx (2009) presents a family of sharing rules that satisfy the internal and external stability re- quirements cited above. We adopt one rule from this set: the allocation rule for abatement requirements under a system of tradable pollution permits followed by XxXxxxx (2007). This rule proposes transfers between coalition members that are “just sufficient to quell any incentive to deviate from the agreement” and distributes the remaining coalition surplus in proportion to the members’ benefit share-to-cost ratio. 3 Application of IEA Model to Debris Mitigation For this initial model of an IEA for space debris mitigation, we examine the effect of a self-enforcing market mechanism on parties’ choices regarding a single type of abatement action: deorbiting of space- craft after mission lifetime. We do not consider other actions parties might take that would affect the rate of debris generation such as active removal of debris, collision avoidance, or anti-satellite weaponry.
3.1 Elements of the model An IEA model requires the following elements: We specify the elements as follows for a space debris mitigation IEA:
3.1.1 Environmental resource and pollutant The environmental resource is taken to be the 900–1000 km altitude shell-of-in...
