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.
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Bibliographic InfoPaper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 37570.
Length: 27 pages
Date of creation: Jan 2011
Date of revision:
Other versions of this item:
- 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.
- Alessandro Tavoni & Astrid Dannenberg & Giorgos Kallis & Andreas LÃ¶schel, 2011. "Inequality, Communication and the Avoidance of Disastrous Climate Change," CCEP Working Papers 1103, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
- F18 - International Economics - - Trade - - - Trade and Environment
- F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
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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
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