On the Self-serving Use of Equity Principles in International Climate Negotiations
AbstractThis paper puts forward equity as an important structural element to understanding negotiation outcomes. We first advance bargaining theory to incorporate the self-serving use of equity. Agents are predicted to push equity principles which benefit them more than other parties, in particular those which are disadvantageous to parties with large bargaining power. Based on unique data from a world-wide survey of agents involved in international climate policy, we then study how participants assess the support of the equity criteria by major parties in the climate negotiations. Comparing these results with cost estimates from a POLES model, we find that the perceived equity preferences of the respective countries or groups of countries are in general consistent with our hypothesis of a self-serving use of equity criteria and thereby lend support for our theoretical model. While this self-interest is recognized by the participants of our survey for the positions of the USA and the G77/China as well as Russia, the EU manages to be seen as choosing (self-serving) equity arguments out of fairness concerns and in order to facilitate the negotiations. --
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Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 07-025.
Date of creation: 2007
Date of revision:
bargaining theory; equity criteria; self-serving bias; climate policy; survey data;
Find related papers by JEL classification:
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-30 (All new papers)
- NEP-ENE-2007-06-30 (Energy Economics)
- NEP-ENV-2007-06-30 (Environmental Economics)
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.:
- Lange, Andreas & Vogt, Carsten & Ziegler, Andreas, 2006.
"On the Importance of Equity in International Climate Policy: An Empirical Analysis,"
ZEW Discussion Papers
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- Lange, Andreas, 2004. "The Impact of Equity-preferences on the Stability of Heterogeneous International Agreements," ZEW Discussion Papers 04-50, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Heike Hennig-Schmidt, 2000. "The Impact of Fairness on Decision Making - An Analysis of Different Video Experiments," Bonn Econ Discussion Papers bgse14_2001, University of Bonn, Germany, revised Feb 2002.
- Toman, Michael & Shogren, Jason, 2000. "Climate Change Policy," Discussion Papers dp-00-22, Resources For the Future.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Andreas Lange (U Hamburg) on Why Fairness Principles Matter to International Climate Change Negotiations
by ? in Economics NOW on 2011-08-25 11:52:00
- Kverndokk, Snorre & Rose, Adam, 2008.
"Equity and justice in global warming policy,"
24272, University Library of Munich, Germany.
- Alfred Endres, 2008. "Ein Unmöglichkeitstheorem für die Klimapolitik?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 9(3), pages 350-382, 08.
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