Adaptation and Mitigation in Global Pollution Problems: Economic Impacts of Productivity, Sensitivity, and Adaptive Capacity
AbstractThis paper studies the influence of productivity, pollution sensitivity, and adaptive capacity on optimal mitigation and adaptation in a two country global pollution model. We investigate the effects of changes of these parameters on the allocation of emissions, adaptation expenditures, and welfare. In our analysis we distinguish between cooperative and noncooperative behavior. Our findings imply that unilateral improvements in productivity and adaptive capacity have strategic significance and do not necessarily lead to mutual welfare improvements. They raise the emissions not only in the country where the technological improvement takes place, but also globally. An improvement in global welfare is guaranteed only under cooperative behavior with respect to emission and adaptation choices.
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 52 (2012)
Issue (Month): 1 (May)
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Web page: http://www.springerlink.com/link.asp?id=100263
Global pollution; Adaptation; Mitigation; Cooperative behavior; Nash equilibrium; Comparative Statics; Q58; Q54;
Other versions of this item:
- Udo Ebert & Heinz Welsch, 2011. "Adaptation and Mitigation in Global Pollution Problems: Economic Impacts of Productivity, Sensitivity and Adaptive Capacity," Working Papers V-332-11, University of Oldenburg, Department of Economics, revised Feb 2011.
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
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