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Is international cooperation on climate change good for the environment?

Author

Listed:
  • Alberto Ansuategi

    (University of the Basque Country)

  • Marta Escapa

    (University of the Basque Country)

Abstract

In this paper we construct an overlapping generations model with climate-economy interactions, where the world is split into two regions. We resort to numerical simulations of the calibrated model to analyze the effect of international cooperation on both the economy and the climate. The results show that, when we consider short-lived governments and international income transfers are allowed, cooperation may lead in the short run to higher environmental degradation than what it would arise in the non-cooperative scenario.

Suggested Citation

  • Alberto Ansuategi & Marta Escapa, 2004. "Is international cooperation on climate change good for the environment?," Economics Bulletin, AccessEcon, vol. 17(7), pages 1-11.
  • Handle: RePEc:ebl:ecbull:eb-04q00001
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    References listed on IDEAS

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    JEL classification:

    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

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