cooperation among natural gas exporting of Caspian sea countries to export gas to Europe with respect to environmental requirements in a game theoretic framework

The Followingfollowing paper explores cooperation among Caspian Sea countries for natural gas exporting to Europe. What is puzzling here is whether environmental requirements, in Nabucoo and Trans Caspian Sea gas projects, play an important role in the strategic decision process among three gas-exporting countries in the region: Iran, Azerbayejan and Turkmenistan. using Maskin’s cooperation model, considering externality,, coalition among natural gas exporters and importers for the Projects has been explored In this paper we answer the question whether a coalition should be formed between the three countries to export gas to Europe. We also calculate the bargaining power of these two countries (or three countries?!). The results show that (or all?!) countries have profits to make the coalition for gas exporting among the Nabucoo project. Given the environmental requirements, Trans Caspian is less Economical than Nabucco so Iran can play important and active role to form a coalition to export gas to Europe in the Nabucco project.