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Information Manipulation and Climate Agreements

Author

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  • Fuhai Hong
  • Xiaojian Zhao

Abstract

It appears that news media and some pro-environmental organizations have the tendency to accentuate or even exaggerate the damage caused by climate change. This article provides a rationale for this tendency by using a modified International Environmental Agreement (IEA) model with asymmetric information. We find that the information manipulation has an instrumental value, as it ex post induces more countries to participate in an IEA, which will eventually enhance global welfare. From the ex ante perspective, however, the impact that manipulating information has on the level of participation in an IEA and on welfare is ambiguous.

Suggested Citation

  • Fuhai Hong & Xiaojian Zhao, 2014. "Information Manipulation and Climate Agreements," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(3), pages 851-861.
    • Handle: RePEc:oup:ajagec:v:96:y:2014:i:3:p:851-861.
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    File URL: http://hdl.handle.net/10.1093/ajae/aau001
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    Cited by:

    1. Sartzetakis, Eftichios & Xepapadeas, Anastasios & Yannacopoulos, Athanasios N., 2023. "Environmental regulation with preferences for social status," Ecological Economics, Elsevier, vol. 209(C).
    2. Eftichios Sartzetakis & Anastasios Xepapadeas & Athanasios Yannacopoulos, 2015. "Regulating the Environmental Consequences of Preferences for Social Status within an Evolutionary Framework," DEOS Working Papers 1502, Athens University of Economics and Business.
    3. Pavel Yakovlev & David Gilson, 2015. "Public Trust and Press Freedom," Economics Bulletin, AccessEcon, vol. 35(1), pages 214-225.

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