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Cooperation on Climate-Change Mitigation

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  • Charles F. Mason
  • Stephen Polasky
  • Nori Tarui

Abstract

We model countries’ choice of greenhouse gas (GHG) emissions as a dynamic game. Emissions generate immediate benefits to the emitting country but also increase atmospheric GHG concentrations that negatively affect present and future welfare of all countries. Because there are no international institutions capable of enforcing environmental agreements on sovereign nations, we analyze self-enforcing climate-change treaties that are supportable as subgame perfect equilibria. In simulations based on current conditions, we explore the structure of a selfenforcing agreement that achieves efficient climate change policy.

Suggested Citation

  • Charles F. Mason & Stephen Polasky & Nori Tarui, 2016. "Cooperation on Climate-Change Mitigation," CESifo Working Paper Series 5698, CESifo.
    • Handle: RePEc:ces:ceswps:_5698
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    Cited by:

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    3. Noha Elboghdadly & Michael Finus, 2020. "Enforcing Climate Agreements: The Role of Escalating Border Carbon Adjustments," Graz Economics Papers 2020-11, University of Graz, Department of Economics.
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    More about this item

    Keywords

    international agreements; climate change; differential games;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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