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Supplementing domestic mitigation and adaptation with emissions reduction abroad to face climate change

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  • Alain Ayong Le Kama

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Aude Pommeret

Abstract

In this paper we focus on a long-term dynamic analysis of the optimal adaptation/mitigation mix in the presence of a pollution threshold above which adaptation is no longer efficient. We account for accumulation in abatement capital, greenhouse gases, and adaptation capital in order to better capture the arbitrage between abatement and adaptation investments. Pollution damages arise from the emissions due to the country consumption but also from the emissions of the rest of the world (ROW). A pollution threshold is then introduced, above which adaptation is no longer efficient. We obtain that if this threshold is lower than the steady-state level of pollution, there is no way for the modelled economy to avoid it. In particular, such a situation will appear if the ROW's emissions are high. We then show that CDM may be a means to avoid a pollution threshold above which adaptation becomes of no use.

Suggested Citation

  • Alain Ayong Le Kama & Aude Pommeret, 2017. "Supplementing domestic mitigation and adaptation with emissions reduction abroad to face climate change," Post-Print hal-02293672, HAL.
    • Handle: RePEc:hal:journl:hal-02293672
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    Cited by:

    1. Maxime Menuet & Alexandru Minea & Patrick Villieu & Anastasios Xepapadeas, 2024. "Environmental quality along the process of economic growth: a theoretical reappraisal," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 77(4), pages 1219-1258, June.
    2. Karine Constant & Marion Davin, 2019. "Unequal Vulnerability to Climate Change and the Transmission of Adverse Effects Through International Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(2), pages 727-759, October.
    3. Fodha, Mouez & Yamagami, Hiroaki, 2025. "Mitigation or adaptation to climate change? The role of fiscal policy," Macroeconomic Dynamics, Cambridge University Press, vol. 29, pages 1-1, January.
    4. Hiroaki Sakamoto & Masako Ikefuji & Jan R. Magnus, 2020. "Adaptation for Mitigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(3), pages 457-484, March.
    5. Natali Hritonenko & Victoria Hritonenko & Yuri Yatsenko, 2020. "Games with Adaptation and Mitigation," Games, MDPI, vol. 11(4), pages 1-16, December.

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