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Governing Climate Geoengineering: Side Payments Are Not Enough

Author

Listed:
  • Riccardo Ghidoni
  • Anna Lou Abatayo
  • Valentina Bosetti
  • Marco Casari
  • Massimo Tavoni

Abstract

Climate geoengineering might reduce the economic and ecological impacts of global warming. However, its governance is challenging: since climate preferences vary across countries, excessive climate geoengineering relative to the socially optimal level is a likely risk. Through a laboratory experiment on a public good-or-bad game, we study to what extent side payments can curb geoengineering efforts and restore efficiency. Although the availability of side payments is theoretically effective, its impact is modest in the experiment, especially in a multilateral setup. Replacing unstructured bilateral agreements with a structured framework improves outcomes.

Suggested Citation

  • Riccardo Ghidoni & Anna Lou Abatayo & Valentina Bosetti & Marco Casari & Massimo Tavoni, 2023. "Governing Climate Geoengineering: Side Payments Are Not Enough," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 10(5), pages 1149-1177.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/724286
    DOI: 10.1086/724286
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    More about this item

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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