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Focusing climate negotiations on a uniform common commitment can promote cooperation

Author

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  • Klaus M. Schmidt

    (Department of Economics, University of Munich, 80539 Munich, Germany; CESifo, University of Munich, 80539 Munich, German; Centre for Economic Policy Research (CEPR), London EC1V 0DX, United Kingdom)

  • Axel Ockenfels

    (Department of Economics, University of Cologne, 50923 Cologne, Germany; Center for Social and Economic Behavior, University of Cologne, 50931 Cologne, Germany)

Abstract

International cooperation on the reduction of greenhouse gas emissions, disarmament, or free trade needs to be negotiated. The success of such negotiations depends on how they are designed. In the context of international climate change policy, it has been proposed [e.g., M. L. Weitzman J. Assoc. Environ. Resour. Econ. 1, 29–49 (2014)] that shifting the negotiation focus to a uniform common commitment (such as a uniform minimum carbon price) would lead to more ambitious cooperation. Yet, a proof-of-concept for this important claim is lacking. Based on game theoretical analyses, we present experimental evidence that strongly supports this conjecture. In our study, human subjects negotiate contributions to a public good. Subjects differ in their benefits and costs of cooperation. Participation in the negotiations and all commitments are voluntary. We consider treatments in which agreements are enforceable, and treatments in which they have to be self-enforcing. In both situations, negotiating a uniform common commitment is more successful in promoting cooperation than negotiating individual commitments (as in the Paris Agreement) and complex common commitments that tailor the commitment to the specific situation of each party (as attempted with the Kyoto Protocol). Furthermore, as suggested by our model, a uniform common commitment benefits most from being enforced.

Suggested Citation

  • Klaus M. Schmidt & Axel Ockenfels, 2021. "Focusing climate negotiations on a uniform common commitment can promote cooperation," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 118(11), pages 2013070118-, March.
  • Handle: RePEc:nas:journl:v:118:y:2021:p:e2013070118
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    References listed on IDEAS

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    1. Christoph Vanberg, 2008. "Why Do People Keep Their Promises? An Experimental Test of Two Explanations -super-1," Econometrica, Econometric Society, vol. 76(6), pages 1467-1480, November.
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    1. Oechssler, Joerg & Reischmann, Andreas & Sofianos, Andis, 2022. "The conditional contribution mechanism for repeated public goods – The general case," Journal of Economic Theory, Elsevier, vol. 203(C).
    2. Alt, Marius & Gallier, Carlo & Kesternich, Martin & Sturm, Bodo, 2023. "Collective minimum contributions to counteract the ratchet effect in the voluntary provision of public goods," Journal of Environmental Economics and Management, Elsevier, vol. 122(C).
    3. Hofmann Elisa & Kyriacou Lucas & Schmidt Klaus M., 2023. "A Model United Nations Experiment on Climate Negotiations," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 243(5), pages 543-566, October.
    4. Axel Ockenfels, 2021. "Pandemiebereitschaft, internationale Kooperation und Marktdesign," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 101(8), pages 594-596, August.
    5. Jürgen Huber & Laura Hueber & Daniel Kleinlercher & Thomas Stöckl, 2022. "Acceptance or rejection of welfare migration—an experimental investigation," SN Business & Economics, Springer, vol. 2(11), pages 1-28, November.
    6. Schmidt, Klaus M., 2021. "Das Design von Klimaschutzverhandlungen," Rationality and Competition Discussion Paper Series 270, CRC TRR 190 Rationality and Competition.
    7. Pedro Naso; Tania Theoduloz; Nicholas Tyack; Dambala Gelo; Mare Sarr; Timothy Swanson, 2021. "Using Information to Improve Global Cooperation: A Climate Change Experiment," CIES Research Paper series 72-2021, Centre for International Environmental Studies, The Graduate Institute.

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