“…For instance, Raupach et al [34] and Du Pont et al [15] assume a 2 degree Celsius target on global warming and investigate the economic effects of allocation mechanisms con- 2 It is also worth noting that, in contrast to some of the literature that models IEAs with the use of repeated or dynamic games with stocks (e.g., Dutta and Radner [16], Harstad [24,25]), our framework is static. While this is consistent with much previous work in both the axiomatic and non-axiomatic strands of the literature (e.g., [1,2,4,3,11,6,12,13,40,39,32,30,18,33]), the dynamic nature of most stock externalities means that it is an assumption that merits attention. For example, Harstad [25] shows that under certain conditions short-term environmental agreements can be considerably less effective than longer-term ones.…”