Inequality, Communication and the Avoidance of Disastrous Climate Change
AbstractInternational efforts to provide global public goods often face the challenges of coordinating national contributions and distributing costs equitably in the face of uncertainty, inequality, and free-riding incentives. In an experimental setting, we distribute endowments unequally among a group of people who can reach a fixed target sum through successive money contributions, knowing that if they fail they will lose all their remaining money with 50% probability. We find that inequality reduces the prospects of reaching the target, but that communication increases success dramatically. Successful groups tend to eliminate inequality over the course of the game, with rich players signalling willingness to redistribute early on. Our results suggest that coordinative institutions and early redistribution from richer to poorer nations may widen our window of opportunity to avoid global climate calamity.
Download InfoIf 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.
Bibliographic InfoPaper provided by Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University in its series CCEP Working Papers with number 1103.
Date of creation: Mar 2011
Date of revision:
Contact details of provider:
Postal: Crawford Building, Lennox Crossing, Building #132, Canberra ACT 0200
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: http://ccep.anu.edu.au/
More information through EDIRC
Other versions of this item:
- Alessandro Tavoni & Astrid Dannenberg & Giorgos Kallis & Andreas Löschel, 2011. "Inequality, communication and the avoidance of disastrous climate change," LSE Research Online Documents on Economics 37570, London School of Economics and Political Science, LSE Library.
- Alessandro Tavoni & Astrid Dannenberg & Giorgos Kallis & Andreas Löschel, 2011. "Inequality, communication and the avoidance of disastrous climate change," Grantham Research Institute on Climate Change and the Environment Working Papers 34, Grantham Research Institute on Climate Change and the Environment.
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-02 (All new papers)
- NEP-ENE-2011-04-02 (Energy Economics)
- NEP-ENV-2011-04-02 (Environmental Economics)
- NEP-EXP-2011-04-02 (Experimental Economics)
You can help add them by filling out this form.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- CCEP Paper Published in PNAS
by David Stern in Stochastic Trend on 2011-07-08 00:01:00
- Two New CCEP Papers
by David Stern in Stochastic Trend on 2011-03-27 11:50:00
- Scott Barrett & Astrid Dannenberg, 2014. "On the Sensitivity of Collective Action to Uncertainty about Climate Tipping Points," CESifo Working Paper Series 4643, CESifo Group Munich.
- Jordi Teixidó-Figueras & Juan Antonio Duro, 2013.
"The building blocks of international ecological footprint inequality: a regression-based decomposition,"
XREAP2013-03, Xarxa de Referència en Economia Aplicada (XREAP), revised Apr 2013.
- Teixidó Figueras, Jordi & Duro Moreno, Juan Antonio, 2013. "The Building Blocks of International Ecological Footprint inequality: A Regression-Base Decomposition," Working Papers 2072/211883, Universitat Rovira i Virgili, Department of Economics.
- Todd Cherry & David McEvoy, 2013. "Enforcing Compliance with Environmental Agreements in the Absence of Strong Institutions: An Experimental Analysis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 54(1), pages 63-77, January.
- Elisabeth Gsottbauer & Jeroen den Bergh, 2013. "Bounded rationality and social interaction in negotiating a climate agreement," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 13(3), pages 225-249, September.
- Karen Pittel & Dirk Rübbelke, 2013.
"International Climate Finance and Its Influence on Fairness and Policy,"
The World Economy,
Wiley Blackwell, vol. 36(4), pages 419-436, 04.
- Karen Pittel & Dirk Rübbelke, 2011. "International Climate Finance and its Influence on Fairness and Policy," Working Papers 2011-04, BC3.
- Pittel, Karen & Rübbelke, Dirk T. G., 2013. "International Climate Finance and Its Influence on Fairness and Policy," Munich Reprints in Economics 19342, University of Munich, Department of Economics.
- Brekke, Kjell Arne & Konow , James & Nyborg, Karine, 2012. "Cooperation Is Relative: Income and Framing Effects with Public Goods," Memorandum 16/2012, Oslo University, Department of Economics.
- Brick, Kerri & Van der Hoven, Zoe & Visser, Martine, 2012. "Cooperation and Climate Change: Can Communication Facilitate the Provision of Public Goods in Heterogeneous Settings?," Discussion Papers dp-12-14-efd, Resources For the Future.
- Scott Barrett & Astrid Dannenberg, 2014. "Negotiating to Avoid "Gradual" versus "Dangerous" Climate Change: An Experimental Test of Two Prisoners' Dilemma," CESifo Working Paper Series 4573, CESifo Group Munich.
- Simon Dietz & Carmen Marchiori & Alessandro Tavoni, 2012.
"Domestic Politics and the Formation of International Environmental Agreements,"
2012.76, Fondazione Eni Enrico Mattei.
- Simon Dietz & Carmen Marchiori & Alessandro Tavoni, 2012. "Domestic politics and the formation of international environmental agreements," Grantham Research Institute on Climate Change and the Environment Working Papers 87, Grantham Research Institute on Climate Change and the Environment.
- Noussair, C.N. & Soest, D.P. van, 2014. "Economic Experiments and Environmental Policy: A Review," Discussion Paper 2014-001, Tilburg University, Center for Economic Research.
- Maxwell Burton-Chellew & Robert May & Stuart West, 2013. "Combined inequality in wealth and risk leads to disaster in the climate change game," Climatic Change, Springer, vol. 120(4), pages 815-830, October.
- Astrid Dannenberg & Andreas Löschel & Gabriele Paolacci & Christiane Reif & Alessandro Tavoni, 2011.
"Coordination under threshold uncertainty in a public goods game,"
2011_20, Department of Economics, University of Venice "Ca' Foscari", revised Nov 2011.
- Astrid Dannenberg & Andreas Löschel & Gabriele Paolacci & Christiane Reif & Alessandro Tavoni, 2011. "Coordination under threshold uncertainty in a public goods game," Grantham Research Institute on Climate Change and the Environment Working Papers 64, Grantham Research Institute on Climate Change and the Environment.
- Dannenberg, Astrid & Löschel, Andreas & Paolacci, Gabriele & Reif, Christiane & Tavoni, Alessandro, 2011. "Coordination under threshold uncertainty in a public goods game," ZEW Discussion Papers 11-065, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Peter H. Kriss & George Loewenstein & Xianghong Wang & Roberto A. Weber, 2011. "Behind the veil of ignorance: Self-serving bias in climate change negotiations," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 6(7), pages 602-615, October.
- Olivier Bochet & Jeremy Laurent-Lucchetti & Justin Leroux & Bernard Sinclair-Desgagné, 2013. "Collective Dangerous Behavior: Theory and Evidence on Risk-Taking," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 13101, Institut d'Economie et Econométrie, Université de Genève.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Stern).
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.