IDEAS home Printed from https://ideas.repec.org/p/gla/glaewp/2013_23.html
   My bibliography  Save this paper

Unilateral emissions mitigation, spillovers, and global learning

Author

Listed:
  • Shurojit Chatterji
  • Sayantan Ghosal
  • Sean Walsh
  • John Whalley

Abstract

What's the role of unilateral measures in global climate change mitigation in a post-Durban, post 2012 global policy regime? We argue that under conditions of preference heterogeneity, unilateral emissions mitigation at a subnational level may exist even when a nation is unwilling to commit to emission cuts. As the fraction of individuals unilaterally cutting emissions in a global strongly connected network of countries evolves over time, learning the costs of cutting emissions can result in the adoption of such activities globally and we establish that this will indeed happen under certain assumptions. We analyze the features of a policy proposal that could accelerate convergence to a low carbon world in the presence of global learning.

Suggested Citation

  • Shurojit Chatterji & Sayantan Ghosal & Sean Walsh & John Whalley, 2013. "Unilateral emissions mitigation, spillovers, and global learning," Working Papers 2013_23, Business School - Economics, University of Glasgow.
  • Handle: RePEc:gla:glaewp:2013_23
    as

    Download full text from publisher

    File URL: http://www.gla.ac.uk/media/media_296226_en.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kolstad, Charles D., 1996. "Learning and Stock Effects in Environmental Regulation: The Case of Greenhouse Gas Emissions," Journal of Environmental Economics and Management, Elsevier, vol. 31(1), pages 1-18, July.
    2. Shapley, Lloyd S & Shubik, Martin, 1969. "On the Core of an Economic System with Externalities," American Economic Review, American Economic Association, vol. 59(4), pages 678-684, Part I Se.
    3. Dutta, Bhaskar & Ghosal, Sayantan & Ray, Debraj, 2005. "Farsighted network formation," Journal of Economic Theory, Elsevier, vol. 122(2), pages 143-164, June.
    4. Shurojit Chatterji & Sayantan Ghosal & Sean Walsh & John Whalley, 2014. "Unilateral Measures and Emissions Mitigation," World Scientific Book Chapters, in: Nicholas Stern & Alex Bowen & John Whalley (ed.), THE GLOBAL DEVELOPMENT OF POLICY REGIMES TO COMBAT CLIMATE CHANGE, chapter 8, pages 181-223, World Scientific Publishing Co. Pte. Ltd..
    5. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801.
    6. Matthew O. Jackson & Leeat Yariv, 2007. "Diffusion of Behavior and Equilibrium Properties in Network Games," American Economic Review, American Economic Association, vol. 97(2), pages 92-98, May.
    7. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-894, Supplemen.
    8. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    9. Ulph, Alistair & Ulph, David, 1997. "Global Warming, Irreversibility and Learning," Economic Journal, Royal Economic Society, vol. 107(442), pages 636-650, May.
    10. de Coninck, Heleen & Stephens, Jennie C. & Metz, Bert, 2009. "Global learning on carbon capture and storage: A call for strong international cooperation on CCS demonstration," Energy Policy, Elsevier, vol. 37(6), pages 2161-2165, June.
    11. Alistair Ulph & David Ulph, "undated". "Global Warming, Irreversibility And Learning," ELSE working papers 056, ESRC Centre on Economics Learning and Social Evolution.
    12. Brian C. O'Neill & Paul Crutzen & Arnulf Gr�bler & Minh Ha Duong & Klaus Keller & Charles Kolstad & Jonathan Koomey & Andreas Lange & Michael Obersteiner & Michael Oppenheimer & William Pepper & Warre, 2006. "Learning and climate change," Climate Policy, Taylor & Francis Journals, vol. 6(5), pages 585-589, September.
      • Brian C. O'Neill & Paul Crutzen & Arnulf Grübler & Minh Ha-Duong & Klaus Keller & Charles Kolstad & Jonathan Koomey & Andreas Lange & Michael Obersteiner & Michael Oppenheimer & William Pepper & Warre, 2006. "Learning and climate change," Post-Print halshs-00134718, HAL.
    13. Shurojit Chatterji & Sayantan Ghosal, 2009. "Technology, Unilateral Commitments and Cumulative Emissions Reduction," CESifo Economic Studies, CESifo, vol. 55(2), pages 286-305, June.
    14. Barreto, Leonardo & Kypreos, Socrates, 2004. "Emissions trading and technology deployment in an energy-systems "bottom-up" model with technology learning," European Journal of Operational Research, Elsevier, vol. 158(1), pages 243-261, October.
    15. -, 2009. "The economics of climate change," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38679, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    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. Dellink, Rob & Finus, Michael, 2012. "Uncertainty and climate treaties: Does ignorance pay?," Resource and Energy Economics, Elsevier, vol. 34(4), pages 565-584.
    2. Shurojit Chatterji & Sayantan Ghosal & Sean Walsh & John Whalley, 2014. "Unilateral Measures and Emissions Mitigation," World Scientific Book Chapters, in: Nicholas Stern & Alex Bowen & John Whalley (ed.), THE GLOBAL DEVELOPMENT OF POLICY REGIMES TO COMBAT CLIMATE CHANGE, chapter 8, pages 181-223, World Scientific Publishing Co. Pte. Ltd..
    3. Chatterji, Shurojit & Ghosal, Sayantan & Walsh, Sean & Whalley, John, 2009. "Unilateral measures and global emissions mitigation," The Warwick Economics Research Paper Series (TWERPS) 915, University of Warwick, Department of Economics.
    4. Finus, Michael & Pintassilgo, Pedro, 2013. "The role of uncertainty and learning for the success of international climate agreements," Journal of Public Economics, Elsevier, vol. 103(C), pages 29-43.
    5. W. Botzen & Jeroen Bergh, 2014. "Specifications of Social Welfare in Economic Studies of Climate Policy: Overview of Criteria and Related Policy Insights," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(1), pages 1-33, May.
    6. Simon Dietz & David Maddison, 2009. "New Frontiers in the Economics of Climate Change," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(3), pages 295-306, July.
    7. Alistair Ulph & Pedro Pintassilgo & Michael Finus, 2019. "Uncertainty, Learning and International Environmental Agreements: The Role of Risk Aversion," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(4), pages 1165-1196, August.
    8. Richard S. J. Tol & In Chang Hwang & Frédéric Reynès, 2012. "The Effect of Learning on Climate Policy under Fat-tailed Uncertainty," Working Paper Series 5312, Department of Economics, University of Sussex Business School.
    9. Michael Finus & Pedro Pintassilgo & Alistair Ulph, 2014. "International Environmental Agreements with Uncertainty, Learning and Risk Aversion," Department of Economics Working Papers 19/14, University of Bath, Department of Economics.
    10. Charles Kolstad & Alistair Ulph, 2011. "Uncertainty, Learning and Heterogeneity in International Environmental Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(3), pages 389-403, November.
    11. Nordhaus, William, 2013. "Integrated Economic and Climate Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1069-1131, Elsevier.
    12. García, Jorge H. & Torvanger, Asbjørn, 2019. "Carbon leakage from geological storage sites: Implications for carbon trading," Energy Policy, Elsevier, vol. 127(C), pages 320-329.
    13. May Elsayyad & Florian Morath, 2016. "Technology Transfers For Climate Change," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57(3), pages 1057-1084, August.
    14. Lontzek, Thomas S. & Narita, Daiju, 2009. "The effect of uncertainty on decision making about climate change mitigation: a numerical approach of stochastic control," Kiel Working Papers 1539, Kiel Institute for the World Economy (IfW Kiel).
    15. Carraro, Carlo & Sgobbi, Alessandra & Bosetti, Valentina & Tavoni, Massimo, 2008. "Delayed Action and Uncertain Targets. How Much Will Climate Policy Cost?," CEPR Discussion Papers 6973, C.E.P.R. Discussion Papers.
    16. van Wijnbergen, Sweder & Willems, Tim, 2015. "Optimal learning on climate change: Why climate skeptics should reduce emissions," Journal of Environmental Economics and Management, Elsevier, vol. 70(C), pages 17-33.
    17. Tol, Richard S.J., 2013. "Targets for global climate policy: An overview," Journal of Economic Dynamics and Control, Elsevier, vol. 37(5), pages 911-928.
    18. Rob Dellink & Michael Finus & Niels Olieman, 2008. "The stability likelihood of an international climate agreement," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 39(4), pages 357-377, April.
    19. In Chang Hwang & Richard S. J. Tol & Marjan W. Hofkes, 2019. "Active Learning and Optimal Climate Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(4), pages 1237-1264, August.
    20. Hwang, In Chang & Reynès, Frédéric & Tol, Richard S.J., 2017. "The effect of learning on climate policy under fat-tailed risk," Resource and Energy Economics, Elsevier, vol. 48(C), pages 1-18.

    More about this item

    Keywords

    Unilateral initiatives; mitigation; spillovers; global learning; technol- ogy transfer;
    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
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    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:gla:glaewp:2013_23. See general information about how to correct material in RePEc.

    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: Business School Research Team (email available below). General contact details of provider: https://edirc.repec.org/data/dpglauk.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.