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Trust and CO2 emissions: cooperation on a global scale

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  • Jo, Ara
  • Carattini, Stefano

Abstract

Although the effect of trust on local cooperation is well-documented, little is known about how trust influences global cooperation. Building on a large body of theoretical and experimental literature, we hypothesize that trust shared in a society may positively affect global cooperative behavior. We provide empirical evidence in the context of climate change that an increase in trust is associated with a larger reduction in CO2 emissions across countries, controlling for country fixed effects and a number of time-varying factors. As a falsification test, we estimate the relationship on an earlier period when there was no concern of man-made climate change (before the 1980s) and find no impact of trust on CO2 emissions during that period.

Suggested Citation

  • Jo, Ara & Carattini, Stefano, 2021. "Trust and CO2 emissions: cooperation on a global scale," LSE Research Online Documents on Economics 112163, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:112163
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    File URL: http://eprints.lse.ac.uk/112163/
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    2. Jo, Ara & Carattini, Stefano, 2021. "Trust and CO2 emissions: Cooperation on a global scale," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 922-937.
    3. Marco Vincenzi, 2023. "Mapping the empirical relationship between environmental performance and social preferences: Evidence from macro data," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2023(1), pages 85-102.
    4. Gugler, Klaus & Haxhimusa, Adhurim & Liebensteiner, Mario, 2023. "Carbon pricing and emissions: Causal effects of Britain's carbon tax," Energy Economics, Elsevier, vol. 121(C).
    5. Yongming Huang & Zebo Kuldasheva & Raufhon Salahodjaev, 2021. "Renewable Energy and CO 2 Emissions: Empirical Evidence from Major Energy-Consuming Countries," Energies, MDPI, vol. 14(22), pages 1-10, November.

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    More about this item

    Keywords

    climate change; cooperation; trust;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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