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Adapting to climate change: Is cooperation good for the environment?

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  • Masoudi, Nahid
  • Zaccour, Georges

Abstract

We consider the formation of an international environmental agreement focusing on adaptation to climate change. Members of the agreement fully share their knowledge and determine their investments in R&D by maximizing their joint welfare, while non-members optimize their individual payoffs. Using a three-stage game formalism, we obtain that a large coalition is achievable and that total emissions increase with the size of the agreement. The welfare implications are parameter dependent.

Suggested Citation

  • Masoudi, Nahid & Zaccour, Georges, 2017. "Adapting to climate change: Is cooperation good for the environment?," Economics Letters, Elsevier, vol. 153(C), pages 1-5.
    • Handle: RePEc:eee:ecolet:v:153:y:2017:i:c:p:1-5
    DOI: 10.1016/j.econlet.2017.01.018
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    References listed on IDEAS

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    2. Lazkano, Itziar & Marrouch, Walid & Nkuiya, Bruno, 2016. "Adaptation to climate change: how does heterogeneity in adaptation costs affect climate coalitions?," Environment and Development Economics, Cambridge University Press, vol. 21(6), pages 812-838, December.
    3. Claude d'Aspremont & Alexis Jacquemin & Jean Jaskold Gabszewicz & John A. Weymark, 1983. "On the Stability of Collusive Price Leadership," Canadian Journal of Economics, Canadian Economics Association, vol. 16(1), pages 17-25, February.
    4. Marrouch, Walid & Ray Chaudhuri, Amrita, 2016. "International Environmental Agreements: Doomed to Fail or Destined to Succeed? A Review of the Literature," International Review of Environmental and Resource Economics, now publishers, vol. 9(3-4), pages 245-319, September.
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    Citations

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    Cited by:

    1. Miguel Borrero & Santiago J. Rubio, 2022. "An adaptation-mitigation game: does adaptation promote participation in international environmental agreements?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 22(3), pages 439-479, September.
    2. Mao, Liang, 2020. "Designing international environmental agreements under participation uncertainty," Resource and Energy Economics, Elsevier, vol. 61(C).
    3. Santiago J. Rubio, 2018. "Self-Enforcing International Environmental Agreements: Adaptation and Complementarity," Working Papers 2018.29, Fondazione Eni Enrico Mattei.
    4. Michèle Breton & Lucia Sbragia, 2019. "The Impact of Adaptation on the Stability of International Environmental Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(2), pages 697-725, October.
    5. Mao, Liang, 2017. "Designing International Environmental Agreements under Participation Uncertainty," MPRA Paper 79145, University Library of Munich, Germany.
    6. Basak Bayramoglu & Jean-François Jacques & Sylvaine Poret, 2023. "Nutrition and Climate Policies in the European Union: Friends or Enemies?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(4), pages 807-849, December.
    7. Mao, Liang, 2017. "Designing International Environmental Agreements under Participation Uncertainty," MPRA Paper 86248, University Library of Munich, Germany.
    8. Takashima, Nobuyuki, 2023. "Self-enforcing international environmental agreements with third-party organizations: Initial payment, technological development, and refunding," Economics Letters, Elsevier, vol. 228(C).
    9. Kuzyutin, Denis & Smirnova, Nadezhda, 2023. "A dynamic multicriteria game of renewable resource extraction with environmentally concerned players," Economics Letters, Elsevier, vol. 226(C).
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    11. Xiao, Lu & Liu, Jianyue & Ge, Jinwen, 2021. "Dynamic game in agriculture and industry cross-sectoral water pollution governance in developing countries," Agricultural Water Management, Elsevier, vol. 243(C).

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    More about this item

    Keywords

    International environmental agreement; Climate change; Adaptation; R&D; Spillover;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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