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International Environmental Agreements in the Presence of Adaptation

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  • Walid Marrouch

    (Lebanese American University, School of Business, Department of Economics and Finance, CIRANO (Center for Interuniversity Research and Analysis on Organizations))

  • Amrita Ray Chaudhuri

    (Department of Economics, CentER, TILEC, Tilburg University, Department of Economics, The University of Winnipeg)

Abstract

We show that adaptive measures undertaken by countries in the face of climate change, apart from directly reducing the damage caused by climate change, may also indirectly mitigate greenhouse gas emissions by increasing the stable size of international agreements on emission reductions. Moreover, we show that the more effective the adaptive measure in terms of reducing the marginal damage from emissions, the larger the stable size of the international environmental agreement. In addition, we show that larger coalitions, in the presence of adaptation, may lead to lower global emission levels and higher welfare.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2011.35.

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Date of creation: Apr 2011
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Handle: RePEc:fem:femwpa:2011.35

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Keywords: International Environmental Agreements; Adaptation; Coalition Formation; Climate Change;

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  1. Kelly C. de Bruin & Rob B. Dellink & Richard S.J. Tol, 2007. "AD-DICE: An Implementation of Adaptation in the DICE Mode," Working Papers 2007.51, Fondazione Eni Enrico Mattei.
  2. S. De Cara & Gilles Rotillon, 2003. "Multigreenhouse gas international agreements," THEMA Working Papers 2003-13, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  3. de Zeeuw, Aart, 2008. "Dynamic effects on the stability of international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 163-174, March.
  4. Kelly de Bruin & Rob Dellink & Shardul Agrawala, 2009. "Economic Aspects of Adaptation to Climate Change: Integrated Assessment Modelling of Adaptation Costs and Benefits," OECD Environment Working Papers 6, OECD Publishing.
  5. Claude d'Aspremont & Alexis Jacquemin & Jean Jaskold Gabszewicz & John A. Weymark, 1983. "On the Stability of Collusive Price Leadership," Canadian Journal of Economics, Canadian Economics Association, vol. 16(1), pages 17-25, February.
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Cited by:
  1. Heuson, Clemens & Gawel, Erik & Gebhardt, Oliver & Hansjürgens, Bernd & Lehmann, Paul & Meyer, Volker & Schwarze, Reimund, 2012. "Ökonomische Grundfragen der Klimaanpassung: Umrisse eines neuen Forschungsprogramms," UFZ Reports 02/2012, Helmholtz Centre for Environmental Research (UFZ).
  2. Heuson, Clemens & Gawel, Erik & Gebhardt, Oliver & Hansjürgens, Bernd & Lehmann, Paul & Meyer, Volker & Schwarze, Reimund, 2012. "Fundamental questions on the economics of climate adaptation: Outlines of a new research programme," UFZ Reports 05/2012, Helmholtz Centre for Environmental Research (UFZ).
  3. repec:old:wpaper:344 is not listed on IDEAS
  4. Klaus Eisenack & Leonhard Kähler, 2012. "Unilateral emission reductions can lead to Pareto improvements when adaptation to damages is possible," Working Papers V-344-12, University of Oldenburg, Department of Economics, revised Jan 2012.

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