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The Role of Proactive Adaptation in International Climate Change Mitigation Agreements

Author

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  • de Bruin, Kelly Chloe
  • Weikard, Hans-Peter
  • Dellink, Rob

Abstract

This paper investigates the role of proactive adaptation in international mitigation coalition formation. Adaptation is introduced into a three stage cartel game of coalition formation. We analytically derive the optimal level of mitigation and proactive adaptation for the singletons and coalition members. We introduce the AD-STACO model which is constructed based on the STACO model, which is an applied three-stage cartel formation model with 12 heterogenous regions. Simulating all possible coalitions (4084) and checking for internal and external stability, we investigate how different levels of proactive adaptation will affect the payoffs in Grand coalition and the incentives to freeride. We examine which stable coalitions are found with different levels of proactive adaptation and whether regions can gain from overadaptation in the best performing stable coalition. We find that though payoffs increase in the Grand coalition with lower adaptation, incentives to leave increase. Coalition members can increase their payoffs through overadaptation.
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Suggested Citation

  • de Bruin, Kelly Chloe & Weikard, Hans-Peter & Dellink, Rob, 2013. "The Role of Proactive Adaptation in International Climate Change Mitigation Agreements," Conference papers 332374, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332374
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    File URL: https://ageconsearch.umn.edu/record/332374/files/6342.pdf
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    Citations

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    Cited by:

    1. Seraina Buob & Gunter Stephan, 2013. "On The Incentive Compatibility Of Funding Adaptation," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(02), pages 1-18.
    2. Oberlack, Christoph & Neumärker, Bernhard, 2011. "Economics, institutions and adaptation to climate change," The Constitutional Economics Network Working Papers 04-2011, University of Freiburg, Department of Economic Policy and Constitutional Economic Theory.
    3. repec:zbw:hohpro:344 is not listed on IDEAS
    4. repec:old:wpaper:344 is not listed on IDEAS
    5. 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.
    6. 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).
    7. Hassan Benchekroun & Ngo Van Long, 2012. "Collaborative Environmental Management: A Review Of The Literature," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 14(04), pages 1-22.
    8. 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).
    9. Kumar Bahadur Darjee & Prem Raj Neupane & Michael Köhl, 2023. "Proactive Adaptation Responses by Vulnerable Communities to Climate Change Impacts," Sustainability, MDPI, vol. 15(14), pages 1-30, July.
    10. Michèle Breton & Lucia Sbragia, 2017. "Adaptation to Climate Change: Commitment and Timing Issues," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(4), pages 975-995, December.

    More about this item

    Keywords

    Environmental Economics and Policy; Agricultural and Food Policy;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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