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Adaptation for Mitigation

Author

Listed:
  • Hiroaki Sakamoto

    (Chiba University)

  • Masako Ikefuji

    (University of Tsukuba
    Osaka University)

  • Jan R. Magnus

    (Vrije Universiteit Amsterdam)

Abstract

This paper develops a two-region (North and South) dynamic model in which regional stocks of effective labor are negatively influenced by the global stock of pollution. By characterizing the equilibrium strategy of each region we show that the regions’ best responses can be strategic complements through a dynamic complementarity effect. The model is then used to analyze the impact of adaptation assistance from North to South. It is shown that North’s unilateral assistance to South (thus enhancing South’s adaptation capacity) can facilitate pollution mitigation in both regions, especially when the assistance is targeted at labor protection. Pollution might increase in the short run, but in the long run the level of pollution will decline. The adaptation assistance we propose is incentive compatible and Pareto improving.

Suggested Citation

  • Hiroaki Sakamoto & Masako Ikefuji & Jan R. Magnus, 2020. "Adaptation for Mitigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(3), pages 457-484, March.
    • Handle: RePEc:kap:enreec:v:75:y:2020:i:3:d:10.1007_s10640-019-00396-x
    DOI: 10.1007/s10640-019-00396-x
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    Cited by:

    1. Alain Ayong Le Kama & Aude Pommeret, 2017. "Supplementing Domestic Mitigation and Adaptation with Emissions Reduction Abroad to Face Climate Change," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(4), pages 875-891, December.
    2. Marion Davin & Mouez Fodha & Thomas Seegmuller, 2023. "Pollution in a globalized world: Are debt transfers among countries a solution?," International Journal of Economic Theory, The International Society for Economic Theory, vol. 19(1), pages 21-38, March.
    3. Marion Davin & Mouez Fodha & Thomas Seegmuller, 2019. "Pollution in a globalized world: Are debt transfers among countries a solution?," Working Papers halshs-02303265, HAL.
    4. Natali Hritonenko & Victoria Hritonenko & Yuri Yatsenko, 2020. "Games with Adaptation and Mitigation," Games, MDPI, vol. 11(4), pages 1-16, December.
    5. Ralph Winkler, 2023. "On the Relationship between Adaptation and Mitigation," CESifo Working Paper Series 10371, CESifo.

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    More about this item

    Keywords

    Adaptation; Climate change; Dynamic game; Mitigation; Strategic complements;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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