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Strategic Implications of Counter-Geoengineering: Clash or Cooperation?

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  • Daniel Heyen
  • Joshua Horton
  • Juan Moreno-Cruz

Abstract

Solar geoengineering has received increasing attention as an option to temporarily stabilize global temperatures. A key concern surrounding these technologies is that heterogeneous preferences over the optimal amount of cooling combined with low deployment costs may allow the country with the strongest incentive for cooling, the so-called free-driver, to impose a substantial externality on the rest of the world. We analyze whether the threat of counter-geoengineering technologies capable of negating the climatic effects of solar geoengineering can overcome the free-driver problem and tilt the game in favor of international cooperation. Our game-theoretical model of asymmetric countries allows for a rigorous analysis of the strategic interaction surrounding solar geoengineering and counter-geoengineering. We find that the free-driver outcome becomes unstable once counter-geoengineering is available, but not always with benign effects. The presence of counter-geoengineering leads to either a climate clash where countries engage in a non-cooperative escalation of opposing climate interventions (negative welfare effect), a moratorium treaty where countries commit to abstain from either type of climate intervention (indeterminate welfare effect), or cooperative deployment of solar geoengineering (positive welfare effect). We show that the outcome depends crucially on the degree of asymmetry in temperature preferences between countries.

Suggested Citation

  • Daniel Heyen & Joshua Horton & Juan Moreno-Cruz, 2018. "Strategic Implications of Counter-Geoengineering: Clash or Cooperation?," CESifo Working Paper Series 7180, CESifo.
  • Handle: RePEc:ces:ceswps:_7180
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    References listed on IDEAS

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    Cited by:

    1. Riccardo Ghidoni & Anna Lou Abatayo & Valentina Bosetti & Marco Casari & Massimo Tavoni, 2023. "Governing Climate Geoengineering: Side Payments Are Not Enough," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 10(5), pages 1149-1177.
    2. Juan Moreno-Cruz & Anthony Harding, 2022. "A Unifying Theory of Foreign Intervention in Domestic Climate Policy," CESifo Working Paper Series 10172, CESifo.
    3. Michael Finus & Francesco Furini, 2022. "Global Climate Governance in the Light of Geoengineering: A Shot in the Dark?," Graz Economics Papers 2022-02, University of Graz, Department of Economics.
    4. Rickels, Wilfried & Quaas, Martin F. & Ricke, Katharine & Quaas, Johannes & Moreno-Cruz, Juan & Smulders, Sjak, 2020. "Who turns the global thermostat and by how much?," Energy Economics, Elsevier, vol. 91(C).
    5. Adrien Fabre & Gernot Wagner, 2020. "Availability of risky geoengineering can make an ambitious climate mitigation agreement more likely," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-4, December.
    6. Moreno-Cruz, Juan & Harding, Anthony, 2023. "A Unifying Theory of Foreign Intervention in Domestic Climate Policy," RFF Working Paper Series 23-24, Resources for the Future.
    7. Elkhan Richard Sadik-Zada & Andrea Gatto & Luigi Aldieri & Giovanna Bimonte & Luigi Senatore & Concetto Paolo Vinci, 2024. "Game Theory Applications to Socio-Environmental Studies, Development Economics, and Sustainability Research," Games, MDPI, vol. 15(1), pages 1-4, January.
    8. Duncan McLaren & Olaf Corry, 2021. "Clash of Geofutures and the Remaking of Planetary Order: Faultlines underlying Conflicts over Geoengineering Governance," Global Policy, London School of Economics and Political Science, vol. 12(S1), pages 20-33, April.
    9. Piergiuseppe Pezzoli & Johannes Emmerling & Massimo Tavoni, 2023. "SRM on the table: the role of geoengineering for the stability and effectiveness of climate coalitions," Climatic Change, Springer, vol. 176(10), pages 1-21, October.
    10. Axel Michaelowa, 2021. "Solar Radiation Modification ‐ A “Silver Bullet” Climate Policy for Populist and Authoritarian Regimes?," Global Policy, London School of Economics and Political Science, vol. 12(S1), pages 119-128, April.
    11. Irina Bakalova & Mariia Belaia, 2023. "Stability of Efficient International Agreements on Solar Geoengineering," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(3), pages 673-712, November.
    12. Muhammet A. Bas & Aseem Mahajan, 2020. "Contesting the climate," Climatic Change, Springer, vol. 162(4), pages 1985-2002, October.

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    More about this item

    Keywords

    climate intervention; solar geoengineering; counter-geoengineering; free-driver; strategic conflicts; game theory; cooperation; externality; global warming; international environmental agreements;
    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
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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