IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/11160.html
   My bibliography  Save this paper

Climate Change Negotiations under the Shadow of History

Author

Listed:
  • Banuri,Sheheryar
  • Nguyen,Ha M.
  • Sergenti, Ernest John

Abstract

Climate change is a global challenge requiring unprecedented levels of collective action. In this context, this paper asks: do appeals to historical responsibility facilitate or hinder collective action? This paper uses a simple lab experiment simulating climate mitigation bargaining between high- and low-income countries. A key design feature is that the need for mitigation is triggered based on historical actions that were undertaken without knowledge of their impact on the environment (and hence, the need for mitigation). Two treatment arms were conducted, a baseline where the cause for mitigation (past actions) is not revealed, and a treatment—“the shadow of history”—where the historical origins of the problem are made explicit. In both conditions, negotiations take place regarding contributions to a mitigation fund (i.e., collective action). Results show that revealing the shadow of history marginally increases average contributions, but the distribution of those contributions changes markedly. When made aware of the historical causes of the climate problem, low-income countries significantly reduce their contributions, while high-income countries contribute more—offsetting the reduction. Critically, the overall welfare of low-income countries increases, while it decreases for high-income countries. Moreover, results from textual analysis of chat data show greater tension when historical responsibility is made explicit, with more negative sentiment and adversarial conversat ions. These results suggest that appealing to historical responsibility appears to be a successful negotiations tactic for poor countries.

Suggested Citation

  • Banuri,Sheheryar & Nguyen,Ha M. & Sergenti, Ernest John, 2025. "Climate Change Negotiations under the Shadow of History," Policy Research Working Paper Series 11160, The World Bank.
  • Handle: RePEc:wbk:wbrwps:11160
    as

    Download full text from publisher

    File URL: https://documents.worldbank.org/curated/en/099712306302565482/pdf/IDU-ef804b52-2cce-42c8-a82a-1ff5bbebf5e6.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lévy-Garboua, Louis & Masclet, David & Montmarquette, Claude, 2009. "A behavioral Laffer curve: Emergence of a social norm of fairness in a real effort experiment," Journal of Economic Psychology, Elsevier, vol. 30(2), pages 147-161, April.
    2. Fanning, Andrew L. & Hickel, Jason, 2023. "Compensation for atmospheric appropriation," LSE Research Online Documents on Economics 119717, London School of Economics and Political Science, LSE Library.
    3. Maxwell Burton-Chellew & Robert May & Stuart West, 2013. "Combined inequality in wealth and risk leads to disaster in the climate change game," Climatic Change, Springer, vol. 120(4), pages 815-830, October.
    4. Lévy-Garboua, Louis & Masclet, David & Montmarquette, Claude, 2009. "A behavioral Laffer curve: Emergence of a social norm of fairness in a real effort experiment," Journal of Economic Psychology, Elsevier, vol. 30(2), pages 147-161, April.
    5. Nisvan Erkal & Lata Gangadharan & Nikos Nikiforakis, 2011. "Relative Earnings and Giving in a Real-Effort Experiment," American Economic Review, American Economic Association, vol. 101(7), pages 3330-3348, December.
    6. Scott Barrett & Astrid Dannenberg, 2014. "Sensitivity of collective action to uncertainty about climate tipping points," Nature Climate Change, Nature, vol. 4(1), pages 36-39, January.
    7. Scott Barrett & Astrid Dannenberg, 2014. "On the Sensitivity of Collective Action to Uncertainty about Climate Tipping Points," CESifo Working Paper Series 4643, CESifo.
    8. Alexander W. Cappelen & Astri Drange Hole & Erik Ø Sørensen & Bertil Tungodden, 2007. "The Pluralism of Fairness Ideals: An Experimental Approach," American Economic Review, American Economic Association, vol. 97(3), pages 818-827, June.
    9. Thomas C. Brown & Stephan Kroll, 2017. "Avoiding an uncertain catastrophe: climate change mitigation under risk and wealth heterogeneity," Climatic Change, Springer, vol. 141(2), pages 155-166, March.
    10. Andrew L. Fanning & Jason Hickel, 2023. "Compensation for atmospheric appropriation," Nature Sustainability, Nature, vol. 6(9), pages 1077-1086, September.
    11. Paul C. Tetlock, 2007. "Giving Content to Investor Sentiment: The Role of Media in the Stock Market," Journal of Finance, American Finance Association, vol. 62(3), pages 1139-1168, June.
    12. Reuben Kline & Nicholas Seltzer & Evgeniya Lukinova & Autumn Bynum, 2018. "Differentiated responsibilities and prosocial behaviour in climate change mitigation," Nature Human Behaviour, Nature, vol. 2(9), pages 653-661, September.
    13. Manfred Milinski & Torsten Röhl & Jochem Marotzke, 2011. "Cooperative interaction of rich and poor can be catalyzed by intermediate climate targets," Climatic Change, Springer, vol. 109(3), pages 807-814, December.
    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. Aseem Mahajan & Reuben Kline & Dustin Tingley, 2022. "Collective Risk and Distributional Equity in Climate Change Bargaining," Journal of Conflict Resolution, Peace Science Society (International), vol. 66(1), pages 61-90, January.
    2. Cloos, Janis & Greiff, Matthias, 2021. "Combating climate change: Is the option to exploit a public good a barrier for reaching critical thresholds? Experimental evidence," MPRA Paper 107144, University Library of Munich, Germany.
    3. Zhi Li & Dongsheng Chen & Pengfei Liu, 2023. "Assurance payments on the coordination of threshold public goods provision: An experimental investigation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(2), pages 407-436, April.
    4. Christian Feige & Karl-Martin Ehrhart & Jan Krämer, 2018. "Climate Negotiations in the Lab: A Threshold Public Goods Game with Heterogeneous Contributions Costs and Non-binding Voting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(2), pages 343-362, June.
    5. Blanco, Esther & Dutcher, E. Glenn & Haller, Tobias, 2020. "Social dilemmas with public and private insurance against losses," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 924-937.
    6. Ivo Steimanis & Natalie Struwe & Julian Benda & Esther Blanco, 2025. "Reducing strategic uncertainty increases group protection in collective risk social dilemmas," Working Papers 2025-02, Faculty of Economics and Statistics, Universität Innsbruck.
    7. Thomas C. Brown & Stephan Kroll, 2017. "Avoiding an uncertain catastrophe: climate change mitigation under risk and wealth heterogeneity," Climatic Change, Springer, vol. 141(2), pages 155-166, March.
    8. Banuri, Sheheryar & Nguyen, Ha, 2023. "Borrowing to keep up (with the Joneses): Inequality, debt, and conspicuous consumption," Journal of Economic Behavior & Organization, Elsevier, vol. 206(C), pages 222-242.
    9. Robert Böhm & Özgür Gürerk & Thomas Lauer, 2020. "Nudging Climate Change Mitigation: A Laboratory Experiment with Inter-Generational Public Goods," Games, MDPI, vol. 11(4), pages 1-20, October.
    10. Waichman, Israel & Requate, Till & Karde, Markus & Milinski, Manfred, 2021. "Challenging conventional wisdom: Experimental evidence on heterogeneity and coordination in avoiding a collective catastrophic event," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    11. Hembach-Stunden, Katharina & Vorlaufer, Tobias & Engel, Stefanie, 2024. "Threshold ambiguity and sustainable resource management: A lab experiment," Ecological Economics, Elsevier, vol. 226(C).
    12. Doncaster, C. Patrick & Tavoni, Alessandro & Dyke, James G., 2017. "Using Adaptation Insurance to Incentivize Climate-change Mitigation," Ecological Economics, Elsevier, vol. 135(C), pages 246-258.
    13. Schuch, Esther & Nhim, Tum & Richter, Andries, 2025. "Coordinating on good and bad outcomes in threshold games – Evidence from an artefactual field experiment in Cambodia," Ecological Economics, Elsevier, vol. 232(C).
    14. Barfuss, Wolfram & Donges, Jonathan & Bethge, Matthias, 2024. "Ecologically-mediated collective action in commons with tipping elements," OSF Preprints 7pcnm, Center for Open Science.
    15. Castro-Santa, Juana & Moros, Lina & Exadaktylos, Filippos & Mantilla, César, 2024. "Early climate mitigation as a social dilemma," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 810-824.
    16. Andrews, Talbot M. & Delton, Andrew W. & Kline, Reuben, 2022. "Anticipating moral hazard undermines climate mitigation in an experimental geoengineering game," Ecological Economics, Elsevier, vol. 196(C).
    17. Casari, Marco & Tavoni, Alessandro, 2024. "Climate clubs in the laboratory," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 110(C).
    18. Ubeda, Paloma, 2014. "The consistency of fairness rules: An experimental study," Journal of Economic Psychology, Elsevier, vol. 41(C), pages 88-100.
    19. Koenig, Tobias & Wagener, Andreas, 2013. "Tax structure and government expenditures with tax equity concerns," Journal of Economic Behavior & Organization, Elsevier, vol. 90(C), pages 137-153.
    20. Schultz, Bill, 2020. "Resource management and joint-planning in fragmented societies," Ecological Economics, Elsevier, vol. 171(C).

    More about this item

    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:wbk:wbrwps:11160. 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: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.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.