• Media type: E-Book; Report
  • Title: Pooling sovereignty risks: The case of environmental treaties and international debt
  • Contributor: Mohr, Ernst [Author]; Thomas, Jonathan P. [Author]
  • imprint: Kiel: Kiel Institute of World Economics (IfW); Kiel, Hamburg: ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft, 1993
  • Language: English
  • Origination:
  • Footnote: Diese Datenquelle enthält auch Bestandsnachweise, die nicht zu einem Volltext führen.
  • Description: A model is analysed in which a sovereign country has independent obligations to repay a creditor bank and to keep an environmental treaty. It is shown that the linkage of both obligations through a cross-default contract may reduce the sovereign risk attached to both the debt and the environmental contracts. Moreover, such a linkage will create an incentive for the sovereign and the bank to engage in a debt-for-natureswap, the anticipation of which increases the initial incentive for a cross-default contract to be entered into.
  • Access State: Open Access