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International and Intergenerational Dimension of Climate Cjange: North-South Cooperat

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Author Info
Alberto Ansuategi Cobo () (UPV/EHU)
Marta Escapa García () (UPV/EHU)
Azucena Perez

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Abstract

Global environmental problems such as climate change have both an international and an intertemporal dimension. Recently, some papers have used an overlapping generations framework to analyze the climate change problem taking into account jointly the issues of intergenerational equity and intertemporal efficiency but without considering the international aspect of the problem. In this paper, we extend such approach by considering an overlapping generations model of climate-economy interactions where the world is split into two regions: North and South. We resort to numerical simulations of the calibrated model to analyze the effect of cooperation over economic and climate variables under two different scenarios: long-lived and short-lived governments. The main aim of our analysis is to test numrically whether John and Pecchenino´s (1997) theoretical result, which states that international agreements with transfers that lack an intergenerational perspective could actually harm the environment, applies low us to conclude that when we consider short lived governments: (1) the lack of cooperation always leads to higher environmental degradation, (2) the higher the welfare weight attached to the North under cooperation, the lower the environmental degradation in the long run, and (3) some cooperative scenarios may lead in the short run to higher environmental degradation than what it would arise in the non cooperative scenario.

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Publisher Info
Paper provided by Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I in its series IKERLANAK with number 200306.

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Date of creation: 15 Jan 2004
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Handle: RePEc:ehu:ikerla:200306

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Postal: Dpto. de Fundamentos del Análisis Económico I, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain
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Related research
Keywords: Climate Change International Environmental Agreements Intergenerational Externaliti

Find related papers by JEL classification:
C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
D62 - Microeconomics - - Welfare Economics - - - Externalities
Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Gerlagh, Reyer & van der Zwaan, B. C. C., 2001. "The effects of ageing and an environmental trust fund in an overlapping generations model on carbon emission reductions," Ecological Economics, Elsevier, vol. 36(2), pages 311-326, February. [Downloadable!] (restricted)
  2. Howarth, Richard B, 1996. "Climate Change and Overlapping Generations," Contemporary Economic Policy, Oxford University Press, vol. 14(4), pages 100-111, October.
  3. John, A Andrew & Pecchenino, Rowena A, 1997. " International and Intergenerational Environmental Externalities," Scandinavian Journal of Economics, Blackwell Publishing, vol. 99(3), pages 371-87, September. [Downloadable!] (restricted)
  4. Yang, Zili, 1999. "Should the north make unilateral technology transfers to the south?: North-South cooperation and conflicts in responses to global climate change," Resource and Energy Economics, Elsevier, vol. 21(1), pages 67-87, January. [Downloadable!] (restricted)
  5. Richard Howarth, 2000. "Climate Change and the Representative Agent," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 15(2), pages 135-148, February. [Downloadable!] (restricted)
  6. Nordhaus, William D & Yang, Zili, 1996. "A Regional Dynamic General-Equilibrium Model of Alternative Climate-Change Strategies," American Economic Review, American Economic Association, vol. 86(4), pages 741-65, September. [Downloadable!] (restricted)
  7. Howarth, Richard B, 1998. " An Overlapping Generations Model of Climate-Economy Interactions," Scandinavian Journal of Economics, Blackwell Publishing, vol. 100(3), pages 575-91, September. [Downloadable!] (restricted)
  8. Ansuategi, Alberto & Escapa, Marta, 2002. "Economic growth and greenhouse gas emissions," Ecological Economics, Elsevier, vol. 40(1), pages 23-37, January. [Downloadable!] (restricted)
  9. Germain, M. & Toint, P. & Tulkens, H. & de Zeeuw A., 1998. "Transfers to Sustain Core-Theoric Cooperation in International Stock Pollutant Control," Papers 9832, Catholique de Louvain - Center for Operations Research and Economics.
  10. Schelling, Thomas C, 1995. "Intergenerational discounting," Energy Policy, Elsevier, vol. 23(4-5), pages 395-401. [Downloadable!] (restricted)
  11. GUNTER Stephan & GEORG MÜLLER-FÜRSTENBERGER & PASCAL Previdoli, 1997. "Overlapping Generations or Infinitely-Lived Agents: Intergenerational Altruism and the Economics of Global Warming," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 10(1), pages 27-40, July. [Downloadable!] (restricted)
  12. Marini Giancarlo & Scaramozzino Pasquale, 1995. "Overlapping Generations and Environmental Control," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 64-77, July. [Downloadable!] (restricted)
  13. Eyckmans, Johan & Tulkens, Henry, 2003. "Simulating coalitionally stable burden sharing agreements for the climate change problem," Resource and Energy Economics, Elsevier, vol. 25(4), pages 299-327, October. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Alberto Ansuategi & Marta Escapa, 2004. "Is international cooperation on climate change good for the environment?," Economics Bulletin, Economics Bulletin, vol. 17(7), pages 1-11. [Downloadable!]
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