IDEAS home Printed from https://ideas.repec.org/p/een/ccepwp/1103.html
   My bibliography  Save this paper

Inequality, Communication and the Avoidance of Disastrous Climate Change

Author

Listed:
  • Alessandro Tavoni

    (Grantham Research Institute, London School of Economics)

  • Astrid Dannenberg

    (Centre for European Economic Research, Mannheim, Germany)

  • Giorgos Kallis

    (ICTA, Universidad Autonoma de Barcelona)

  • Andreas Loeschel

    (Centre for European Economic Research, Mannheim, Germany)

Abstract

International efforts to provide global public goods often face the challenges of coordinating national contributions and distributing costs equitably in the face of uncertainty, inequality, and free-riding incentives. In an experimental setting, we distribute endowments unequally among a group of people who can reach a fixed target sum through successive money contributions, knowing that if they fail they will lose all their remaining money with 50% probability. We find that inequality reduces the prospects of reaching the target, but that communication increases success dramatically. Successful groups tend to eliminate inequality over the course of the game, with rich players signalling willingness to redistribute early on. Our results suggest that coordinative institutions and early redistribution from richer to poorer nations may widen our window of opportunity to avoid global climate calamity.

Suggested Citation

  • Alessandro Tavoni & Astrid Dannenberg & Giorgos Kallis & Andreas Loeschel, 2011. "Inequality, Communication and the Avoidance of Disastrous Climate Change," CCEP Working Papers 1103, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
  • Handle: RePEc:een:ccepwp:1103
    as

    Download full text from publisher

    File URL: http://ccep.anu.edu.au/data/2011/pdf/wpapers/CCEP1103Tavoni.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 817-868.
    2. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ederer, Florian & Stremitzer, Alexander, 2017. "Promises and expectations," Games and Economic Behavior, Elsevier, vol. 106(C), pages 161-178.
    2. Cooper, David J. & Saral, Krista & Villeval, Marie Claire, 2019. "Why Join a Team?," IZA Discussion Papers 12587, Institute of Labor Economics (IZA).
      • David J. Cooper & Krista Saral & Marie Claire Villeval, 2021. "Why Join a Team?," Post-Print halshs-03003653, HAL.
      • David Cooper & Krista Saral & Marie Claire Villeval, 2019. "Why Join a Team?," Working Papers halshs-02295921, HAL.
      • David J. Cooper & Krista Saral & Marie Claire Villeval, 2019. "Why Join a Team?," Working Papers 1928, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    3. Falk Armin & Kosfeld Michael, 2012. "It's all about Connections: Evidence on Network Formation," Review of Network Economics, De Gruyter, vol. 11(3), pages 1-36, September.
    4. Gary Bolton & Eugen Dimant & Ulrich Schmidt, 2018. "When a Nudge Backfires. Using Observation with Social and Economic Incentives to Promote Pro-Social Behavior," PPE Working Papers 0017, Philosophy, Politics and Economics, University of Pennsylvania.
    5. James Bland & Nikos Nikiforakis, 2013. "Tacit Coordination in Games with Third-Party Externalities," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2013_19, Max Planck Institute for Research on Collective Goods.
    6. Gabriele Camera & Cary Deck & David Porter, 2020. "Do economic inequalities affect long-run cooperation and prosperity?," Experimental Economics, Springer;Economic Science Association, vol. 23(1), pages 53-83, March.
    7. Robert S. Gibbons & Manuel Grieder & Holger Herz & Christian Zehnder, 2019. "Building an Equilibrium: Rules Versus Principles in Relational Contracts," CESifo Working Paper Series 7871, CESifo.
    8. Dickinson, David L. & Masclet, David, 2019. "Using ethical dilemmas to predict antisocial choices with real payoff consequences: An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 195-215.
    9. Friedrich Heinemann & Martin Kocher, 2013. "Tax compliance under tax regime changes," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(2), pages 225-246, April.
    10. Amrei Lahno & Marta Serra-Garcia, 2015. "Peer effects in risk taking: Envy or conformity?," Journal of Risk and Uncertainty, Springer, vol. 50(1), pages 73-95, February.
    11. Menusch Khadjavi, 2018. "Deterrence works for criminals," European Journal of Law and Economics, Springer, vol. 46(1), pages 165-178, August.
    12. Jacob K. Goeree & Leeat Yariv, 2015. "Conformity in the lab," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 1(1), pages 15-28, July.
    13. Ispano, Alessandro & Schwardmann, Peter, 2017. "Cooperating over losses and competing over gains: A social dilemma experiment," Games and Economic Behavior, Elsevier, vol. 105(C), pages 329-348.
    14. David Macro & Jeroen Weesie, 2016. "Inequalities between Others Do Matter: Evidence from Multiplayer Dictator Games," Games, MDPI, vol. 7(2), pages 1-23, April.
    15. Ghidoni, Riccardo & Suetens, Sigrid, 2019. "Empirical Evidence on Repeated Sequential Games," Other publications TiSEM ff3a441f-e196-4e45-ba59-c, Tilburg University, School of Economics and Management.
    16. Ambrus, Attila & Pathak, Parag A., 2011. "Cooperation over finite horizons: A theory and experiments," Journal of Public Economics, Elsevier, vol. 95(7), pages 500-512.
    17. Martin G. Kocher & Fangfang Tan & Jing Yu, 2018. "Providing Global Public Goods: Electoral Delegation And Cooperation," Economic Inquiry, Western Economic Association International, vol. 56(1), pages 381-397, January.
    18. Ubeda, Paloma, 2014. "The consistency of fairness rules: An experimental study," Journal of Economic Psychology, Elsevier, vol. 41(C), pages 88-100.
    19. Vera Popva, 2010. "What renders financial advisors less treacherous? - On commissions and reciprocity -," Jena Economic Research Papers 2010-036, Friedrich-Schiller-University Jena.
    20. Andrea Isoni & Robert Sugden & Jiwei Zheng, 2018. "The Pizza Night Game: Efficiency, Conflict and Inequality in Tacit Bargaining Games with Focal Points," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 18-01, School of Economics, University of East Anglia, Norwich, UK..

    More about this item

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:een:ccepwp:1103. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/asanuau.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCEP (email available below). General contact details of provider: https://edirc.repec.org/data/asanuau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.