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Negative Emission Technologies and Climate Cooperation

Author

Listed:
  • Michela Boldrini
  • Valentina Bosetti
  • Salvatore Nunnari

Abstract

Negative Emissions Technologies (NETs) — a range of methods to remove carbon dioxide from the atmosphere— are a crucial innovation in meeting temperature targets set by international climate agreements. However, mechanisms which undo the adverse consequences of short-sighted actions (as NETs) can fuel substitution effects and crowd out virtuous behaviors (e.g., mitigation efforts). For this reason, the impact of NETs on environmental preservation is an open question among scientists and policy-makers. We model this problem through a novel restorable common-pool resource game and use a laboratory experiment to exogenously manipulate key features of NETs and assess their consequences. We show that crowding out only emerges when NETs are surely available and cheap. The availability of NETs does not allow experimental communities to either conserve the common resource for longer or accrue higher earnings and makes the earnings distribution more unequal.

Suggested Citation

  • Michela Boldrini & Valentina Bosetti & Salvatore Nunnari, 2024. "Negative Emission Technologies and Climate Cooperation," CESifo Working Paper Series 10905, CESifo.
    • Handle: RePEc:ces:ceswps:_10905
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    References listed on IDEAS

    as
    1. Tasneem, Dina & Engle-Warnick, Jim & Benchekroun, Hassan, 2017. "An experimental study of a common property renewable resource game in continuous time," Journal of Economic Behavior & Organization, Elsevier, vol. 140(C), pages 91-119.
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    3. Emanuel Vespa, 2020. "An Experimental Investigation Of Cooperation In The Dynamic Common Pool Game," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(1), pages 417-440, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    climate crisis; environmental sustainability; carbon dioxide removal; common-pool resource; free-rider problem; laboratory experiment;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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