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Climate Change : Behavioral Responses from Extreme Events and Delayed Damages

Author

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  • Ghidoni, Riccardo

    (Tilburg University, Center For Economic Research)

  • Calzolari, G.
  • Casari, Marco

Abstract

Understanding how to sustain cooperation in the climate change global dilemma is crucial to mitigate its harmful consequences. Damages from climate change typically occurs after long delays and can take the form of more frequent realizations of extreme and random events. These features generate a decoupling between emissions and their damages, which we study through a laboratory experiment. We find that some decision-makers respond to global emissions, as expected, while others respond to realized damages also when emissions are observable. On balance, the presence of delayed/stochastic consequences did not impair cooperation. However, we observed a worrisome increasing trend of emissions when damages hit with delay.

Suggested Citation

  • Ghidoni, Riccardo & Calzolari, G. & Casari, Marco, 2017. "Climate Change : Behavioral Responses from Extreme Events and Delayed Damages," Discussion Paper 2017-024, Tilburg University, Center for Economic Research.
  • Handle: RePEc:tiu:tiucen:081ac6f7-78e3-4c05-9b0a-4230e4e0d9f9
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    More about this item

    Keywords

    Social dilemma; Experiments; Greenhouse gas; pollution;

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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