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Climate Negotiations in the Lab: A Threshold Public Goods Game with Heterogeneous Contributions Costs and Non-binding Voting

Author

Listed:
  • Christian Feige

    (Institute of Economics (ECON))

  • Karl-Martin Ehrhart

    (Institute of Economics (ECON))

  • Jan Krämer

    (University of Passau)

Abstract

We model the climate negotiations and the countries’ individual commitments to carbon dioxide reductions as a threshold public goods game with uncertain threshold value. We find that a non-binding unanimous voting procedure on contribution vectors leads to frequent agreement on an optimal total contribution and high rates of compliance, even in the case of heterogeneous marginal contribution costs. However, groups that do not reach agreement perform worse than the baseline treatments without a voting procedure. The contribution vectors chosen by the groups point to a predominant burden-sharing rule that equalizes individual contribution costs, even at the cost of the group’s total payoff.

Suggested Citation

  • Christian Feige & Karl-Martin Ehrhart & Jan Krämer, 2018. "Climate Negotiations in the Lab: A Threshold Public Goods Game with Heterogeneous Contributions Costs and Non-binding Voting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(2), pages 343-362, June.
    • Handle: RePEc:kap:enreec:v:70:y:2018:i:2:d:10.1007_s10640-017-0123-x
    DOI: 10.1007/s10640-017-0123-x
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    2. Spycher, Sarah, 2023. "Meet Me at the Threshold - Asymmetric Preferences in a Threshold Public Goods Game," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277590, Verein für Socialpolitik / German Economic Association.

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