Advanced Search
MyIDEAS: Login

International Support of Climate Change Policies in Developing Countries: Strategic, Moral and Fairness Aspects

Contents:

Author Info

  • Dirk Rübbelke

Abstract

International transfers in climate policy channeled from the industrialized to the developing world either support the mitigation of climate change or the adaptation to global warming. From an allocative efficiency point of view, transfers supporting mitigation tend to be Pareto-improving whereas this is not very likely in the case of adaptation support. We illustrate this by regarding transfer schemes currently applied under the UN Framework Convention on Climate Change (UNFCCC) and the Kyoto framework. However, if we enrich the analysis by integrating distributional aspects, we find that international adaptation funding may help both developing and developed world. Interestingly this is not due to altruistic incentives, but due to follow-up effects on international negotiations on climate change mitigation. We argue that the lack of fairness perceived by developing countries in the international climate policy arena can be reduced by the support of adaptation in these countries. As we show – taking into account different fairness concepts – this might raise the prospects of success in international negotiations on climate change. Yet, we find that the influence of transfers may induce different fairness effects on climate change mitigation negotiations to run counter. We discuss whether current transfer schemes under the UNFCCC and the Kyoto framework adequately serve the distributive and allocative objectives pursued in international climate policy.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.bc3research.org/index.php?option=com_wpapers&task=downpubli&iddoc=32&repec=1&Itemid=279
Download Restriction: no

Bibliographic Info

Paper provided by BC3 in its series Working Papers with number 2011-02.

as in new window
Length:
Date of creation: Feb 2011
Date of revision:
Publication status: Published
Handle: RePEc:bcc:wpaper:2011-02

Contact details of provider:
Web page: http://www.bc3research.org/

Related research

Keywords: adaptation; climate change; fairness; Global Environmental Facility; international climate policy; mitigation; reciprocity; transfers;

Other versions of this item:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Bastianoni, Simone & Pulselli, Federico Maria & Tiezzi, Enzo, 2004. "The problem of assigning responsibility for greenhouse gas emissions," Ecological Economics, Elsevier, vol. 49(3), pages 253-257, July.
  2. Stine Aakre & Dirk Rubbelke, 2010. "Objectives of public economic policy and the adaptation to climate change," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 53(6), pages 767-791.
  3. Kverndokk, Snorre & Rose, Adam, 2008. "Equity and Justice in Global Warming Policy," International Review of Environmental and Resource Economics, now publishers, vol. 2(2), pages 135-176, October.
  4. Rabin, Matthew, 1997. "Fairness in Repeated Games," Department of Economics, Working Paper Series qt0nz5b4mb, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  5. Helm, Carsten, 2003. "International emissions trading with endogenous allowance choices," Journal of Public Economics, Elsevier, vol. 87(12), pages 2737-2747, December.
  6. Vernon L. Smith, 2003. "Constructivist and Ecological Rationality in Economics," American Economic Review, American Economic Association, vol. 93(3), pages 465-508, June.
  7. Armin Falk & Urs Fischbacher, 2001. "A Theory of Reciprocity," CESifo Working Paper Series 457, CESifo Group Munich.
  8. Nathan Rive & Dirk Rübbelke, 2010. "International environmental policy and poverty alleviation," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 146(3), pages 515-543, September.
  9. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986. "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," American Economic Review, American Economic Association, vol. 76(4), pages 728-41, September.
  10. Buchholz, Wolfgang & Cornes, Richard & Rübbelke, Dirk, 2011. "Interior matching equilibria in a public good economy: An aggregative game approach," Journal of Public Economics, Elsevier, vol. 95(7), pages 639-645.
  11. Ernst Fehr & Simon Gaechter, . "Fairness and Retaliation: The Economics of Reciprocitys," IEW - Working Papers 040, Institute for Empirical Research in Economics - University of Zurich.
  12. Gary Bolton & Axel Ockenfels, 2005. "A stress test of fairness measures in models of social utility," Economic Theory, Springer, vol. 25(4), pages 957-982, 06.
  13. Arrow Kenneth J, 2007. "Global Climate Change: A Challenge to Policy," The Economists' Voice, De Gruyter, vol. 4(3), pages 1-5, June.
  14. Lange, Andreas & Vogt, Carsten & Ziegler, Andreas, 2006. "On the Importance of Equity in International Climate Policy: An Empirical Analysis," ZEW Discussion Papers 06-42, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  15. Guttman, Joel M, 1978. "Understanding Collective Action: Matching Behavior," American Economic Review, American Economic Association, vol. 68(2), pages 251-55, May.
  16. Andreas Lange & Andreas Löschel & Carsten Vogt & Andreas Ziegler, 2009. "On the Self-interested Use of Equity in International Climate Negotiations," NBER Working Papers 14930, National Bureau of Economic Research, Inc.
  17. Falkinger, Josef, 1996. "Efficient private provision of public goods by rewarding deviations from average," Journal of Public Economics, Elsevier, vol. 62(3), pages 413-422, November.
  18. Eyckmans, Johan & Kverndokk, Snorre, 2010. "Moral concerns on tradable pollution permits in international environmental agreements," Ecological Economics, Elsevier, vol. 69(9), pages 1814-1823, July.
  19. Paavola, Jouni & Adger, W. Neil, 2005. "Institutional ecological economics," Ecological Economics, Elsevier, vol. 53(3), pages 353-368, May.
  20. Colin F. Camerer, 1997. "Progress in Behavioral Game Theory," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 167-188, Fall.
  21. Jayaraman, Rajshri & Kanbur, Ravi, 1999. "International Public Goods and the Case for Foreign Aid," Working Papers 127684, Cornell University, Department of Applied Economics and Management.
  22. Paavola, Jouni & Adger, W. Neil, 2006. "Fair adaptation to climate change," Ecological Economics, Elsevier, vol. 56(4), pages 594-609, April.
  23. Robin Boadway & Zhen Song & Jean-Francois Tremblay, 2006. "Commitment and Matching Contributions to Public Goods," Working Papers 1067, Queen's University, Department of Economics.
  24. Pittel, Karen & Rübbelke, Dirk T.G., 2008. "Climate policy and ancillary benefits: A survey and integration into the modelling of international negotiations on climate change," Ecological Economics, Elsevier, vol. 68(1-2), pages 210-220, December.
  25. Geanakoplos, John & Pearce, David & Stacchetti, Ennio, 1989. "Psychological games and sequential rationality," Games and Economic Behavior, Elsevier, vol. 1(1), pages 60-79, March.
  26. Schelling, Thomas C, 1992. "Some Economics of Global Warming," American Economic Review, American Economic Association, vol. 82(1), pages 1-14, March.
  27. Lasse Ringius & Asbjørn Torvanger & Arild Underdal, 2002. "Burden Sharing and Fairness Principles in International Climate Policy," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 2(1), pages 1-22, March.
  28. Matthew Rabin., 1992. "Incorporating Fairness into Game Theory and Economics," Economics Working Papers 92-199, University of California at Berkeley.
  29. W.Neil Adger, 2001. "Scales of governance and environmental justice for adaptation and mitigation of climate change," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(7), pages 921-931.
  30. Gielen, Dolf & Changhong, Chen, 2001. "The CO2 emission reduction benefits of Chinese energy policies and environmental policies:: A case study for Shanghai, period 1995-2020," Ecological Economics, Elsevier, vol. 39(2), pages 257-270, November.
  31. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1986. "Fairness and the Assumptions of Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages S285-300, October.
  32. Barrett Scott, 2007. "Proposal for a New Climate Change Treaty System," The Economists' Voice, De Gruyter, vol. 4(3), pages 1-6, October.
  33. Buchholz, Wolfgang & Konrad, Kai A., 1995. "Strategic transfers and private provision of public goods," Journal of Public Economics, Elsevier, vol. 57(3), pages 489-505, July.
  34. Neumayer, Eric, 2000. "In defence of historical accountability for greenhouse gas emissions," Ecological Economics, Elsevier, vol. 33(2), pages 185-192, May.
  35. Karen Pittel & Dirk Rübbelke, 2012. "Transitions in the negotiations on climate change: from prisoner’s dilemma to chicken and beyond," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 12(1), pages 23-39, March.
  36. Ekin, Paul, 1996. "The secondary benefits of CO2 abatement: How much emission reduction do they justify?," Ecological Economics, Elsevier, vol. 16(1), pages 13-24, January.
  37. Althammer, Wilhelm & Buchholz, Wolfgang, 1993. "Lindahl-equilibria as the outcome of a non-cooperative game : A reconsideration," European Journal of Political Economy, Elsevier, vol. 9(3), pages 399-405, August.
  38. B. Smit & I. Burton & R.J.T. Klein & R. Street, 1999. "The Science of Adaptation: A Framework for Assessment," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 4(3), pages 199-213, September.
  39. Scott Barrett, 2008. "Climate treaties and the imperative of enforcement," Oxford Review of Economic Policy, Oxford University Press, vol. 24(2), pages 239-258, Summer.
  40. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
  41. Peggy Musgrave, 2008. "Comments on two Musgravian concepts," Journal of Economics and Finance, Springer, vol. 32(4), pages 340-347, October.
  42. Robin Boadway, 1997. "Public Economics and the Theory of Public Policy," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 753-72, November.
  43. Richard Musgrave, 2008. "Public finance and three branch model," Journal of Economics and Finance, Springer, vol. 32(4), pages 334-339, October.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
  2. Jonathan Pickering & Jakob Skovgaard & Soyeun Kim & J. Timmons Roberts & David Rossati & Martin Stadelmann & Hendrikje Reich, 2013. "Acting on Climate Finance Pledges: Inter-Agency Dynamics and Relationships with Aid in Contributor States," CCEP Working Papers 1306, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
  3. Kai A. Konrad & Marcel Thum, 2012. "The Role of Economic Policy in Climate Change Adaptation," CESifo Working Paper Series 3959, CESifo Group Munich.
  4. Oberlack, Christoph & Eisenack, Klaus, 2012. "Overcoming barriers to urban adaptation through international cooperation? Modes and design properties under the UNFCCC," The Constitutional Economics Network Working Papers 03-2012, University of Freiburg, Department of Economic Policy and Constitutional Economic Theory.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bcc:wpaper:2011-02. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sergio Faria).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.