Incentives and stability of international climate coalitions: An integrated assessment
AbstractThis paper analyses the incentives to participate in an international climate agreement and the stability of the resulting climate coalition using the integrated assessment model WITCH. Coalition stability is assessed under alternative assumptions concerning the pure rate of time preference, the aggregation of social welfare, and the severity of climate damages. The profitability, stability, and strong potential internal stability of a number of coalitions, those potentially effective in reducing GHG emissions, is explored in the paper. The main conclusion is that only the grand coalition, i.e. a coalition where all world regions cooperate to reduce emissions, can maintain GHG concentration below 550ppm CO2-eq. However, this coalition is not internally stable, even when allowing for monetary transfers across world regions. Nonetheless, the paper also shows that strongly potentially internally stable coalitions exist, though of smaller size, which can mitigate global warming and limit GHG concentrations to 600ppm CO2-eq.
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Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 55 (2013)
Issue (Month): C ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/enpol
Climate coalition; Game theory; Free-riding;
Other versions of this item:
- Valentina Bosetti & Carlo Carraro & Enrica De Cian & Emanuele Massetti & Massimo Tavoni, 2011. "Incentives and Stability of International Climate Coalitions: An Integrated Assessment," Working Papers 2011.97, Fondazione Eni Enrico Mattei.
- Bosetti, Valentina & Carraro, Carlo & De Cian, Enrica & Massetti, Emanuele & Tavoni, Massimo, 2012. "Incentives and Stability Of International Climate Coalitions: An Integrated Assessment," CEPR Discussion Papers 8821, C.E.P.R. Discussion Papers.
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
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