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Is international cooperation on climate change good for the environment?

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Author Info
Alberto Ansuategi () (University of the Basque Country)
Marta Escapa () (University of the Basque Country)

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Abstract

In this paper we construct an overlapping generations model with climate-economy interactions, where the world is split into two regions. We resort to numerical simulations of the calibrated model to analyze the effect of international cooperation on both the economy and the climate. The results show that, when we consider short-lived governments and international income transfers are allowed, cooperation may lead in the short run to higher environmental degradation than what it would arise in the non-cooperative scenario.

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File URL: http://www.economicsbulletin.com/2004/volume17/EB-04Q00001A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 17 (2004)
Issue (Month): 7 ()
Pages: 1-11
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ebl:ecbull:v:17:y:2004:i:7:p:1-11

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Related research
Keywords: Climate change; intergenerational externalities; international environmental agreements; overlapping generations model;

Find related papers by JEL classification:
Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

References listed on IDEAS
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  1. Gerlagh, Reyer & van der Zwaan, B. C. C., 2001. "The effects of ageing and an environmental trust fund in an overlapping generations model on carbon emission reductions," Ecological Economics, Elsevier, vol. 36(2), pages 311-326, February. [Downloadable!] (restricted)
  2. John, A Andrew & Pecchenino, Rowena A, 1997. " International and Intergenerational Environmental Externalities," Scandinavian Journal of Economics, Blackwell Publishing, vol. 99(3), pages 371-87, September. [Downloadable!] (restricted)
  3. Yang, Zili, 1999. "Should the north make unilateral technology transfers to the south?: North-South cooperation and conflicts in responses to global climate change," Resource and Energy Economics, Elsevier, vol. 21(1), pages 67-87, January. [Downloadable!] (restricted)
  4. Richard Howarth, 2000. "Climate Change and the Representative Agent," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 15(2), pages 135-148, February. [Downloadable!] (restricted)
  5. Buchner, Barbara & Carraro, Carlo, 2004. "Economic and Environmental Effectiveness of a Technology-based Protocol," CEPR Discussion Papers 4412, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  6. Nordhaus, William D & Yang, Zili, 1996. "A Regional Dynamic General-Equilibrium Model of Alternative Climate-Change Strategies," American Economic Review, American Economic Association, vol. 86(4), pages 741-65, September. [Downloadable!] (restricted)
  7. Howarth, Richard B, 1998. " An Overlapping Generations Model of Climate-Economy Interactions," Scandinavian Journal of Economics, Blackwell Publishing, vol. 100(3), pages 575-91, September. [Downloadable!] (restricted)
  8. GERMAINÊMarc, TOINTÊPhilippe, TULKENSÊHenry,, 1997. "Financial transfers to ensure cooperative international optimality in stock pollutant abatement," CORE Discussion Papers 1997001, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. Ansuategi, Alberto & Escapa, Marta, 2002. "Economic growth and greenhouse gas emissions," Ecological Economics, Elsevier, vol. 40(1), pages 23-37, January. [Downloadable!] (restricted)
  10. Alberto Ansuategi Cobo & Marta Escapa García & Azucena Perez, 2004. "International and Intergenerational Dimension of Climate Cjange: North-South Cooperat," IKERLANAK 200306, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I. [Downloadable!]
  11. GUNTER Stephan & GEORG MÜLLER-FÜRSTENBERGER & PASCAL Previdoli, 1997. "Overlapping Generations or Infinitely-Lived Agents: Intergenerational Altruism and the Economics of Global Warming," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 10(1), pages 27-40, July. [Downloadable!] (restricted)
  12. Marini Giancarlo & Scaramozzino Pasquale, 1995. "Overlapping Generations and Environmental Control," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 64-77, July. [Downloadable!] (restricted)
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