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The Effect of Inequality Aversion on a Climate Coalition Formation: Theory and Experimental Evidence

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  • Lin, Yu-Hsuan

Abstract

This chapter examines the impact of inequality-averse attitudes on the individual incentives of participating in international environmental agreements by a laboratory experiment. The experimental result shows that the inequality-averse attitudes have significantly positive impact on the incentives of participation. Particularly, when they are non-critical players, egalitarians are likely to give up the free riding benefit by joining a coalition. It helps us to understand the coalition formation in the international conventions.

Suggested Citation

  • Lin, Yu-Hsuan, 2017. "The Effect of Inequality Aversion on a Climate Coalition Formation: Theory and Experimental Evidence," MPRA Paper 84097, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:84097
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    File URL: https://mpra.ub.uni-muenchen.de/84097/1/MPRA_paper_84097.pdf
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    References listed on IDEAS

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    Cited by:

    1. Yu Hsuan LIN, 2018. "How Does Altruism Enlarge A Climate Coalition," Journal of Advanced Research in Management, ASERS Publishing, vol. 9(3), pages 553-563.

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    More about this item

    Keywords

    Social preference; experimental design; international environmental agreement; inequality aversion; heterogeneous countries;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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