Based on the assumption that security institutions are designed rationally, I study the variations in design schemes and their possible effects on institutional performance. Military alliances vary with respect to their membership size, level of security obligations undertaken by the allies, incorporation of non security clauses such as economic agreements, level of institutionalization, specified duration of existence, as well as the conditions under and reasons for which they are formed. This dissertation studies the effects of above mentioned design features on the probability of security alliances expanding their scope by addressing non-security agreements such as free trade agreements and conflict management clauses. I find support for the argument that states include economic agreements within a military alliance as a means to bolster the credibility of an otherwise weak security alliance. Results indicate that allies facing high levels of external threat and low levels of intra alliance cohesion are more likely to include conflict management provisions in the alliance. Finally, I conduct a systematic study of the possible effects of variation in structural design on the durability of an alliance. I find that design features that increase the costs of breaking the alliance increase the duration of an alliance.

In this paper, we discuss the endogenous formation of self-enforcing climate coalitions linked to the issue of a free trade agreement. As a framework, a strategic trade model is used in which countries may discourage greenhouse gas emissions by means of an import tariff on dirty goods. In addition, countries can set an emissions cap being effective on a permit market. Our main focus, however, is on the utilization of terms of trade privileges provided to members of a preferential free trade area. We propose evidence for that the welfare gains of trade liberalization are strongly promoting the formation of climate coalitions. In the parametrical simulation of the model, global emissions as well as climate change damages are found significantly reduced compared to the BAU scenario while global welfare is found significantly higher.

In this paper, we discuss the endogenous formation of self-enforcing climate coalitions linked to the issue of a free trade agreement. As a framework, a strategic trade model is used in which countries may discourage greenhouse gas emissions by means of an import tariff on dirty goods. In addition, countries can set an emissions cap being effective on a permit market. Our main focus, however, is on the utilization of terms of trade privileges provided to members of a preferential free trade area. We propose evidence for that the welfare gains of trade liberalization are strongly promoting the formation of climate coalitions. In the parametrical simulation of the model, global emissions as well as climate change damages are found significantly reduced compared to the BAU scenario while global welfare is found significantly higher.