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More frequent commitments promote cooperation, ratcheting does not

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  • Ockenfels, Axel
  • Gallier, Carlo
  • Sturm, Bodo

Abstract

International climate negotiations have so far failed to produce ambitious climate cooperation. We combine laboratory experiments with simulations to investigate the performance of two negotiation design features to address this failure: The Paris Agreement's ratchet-up mechanism, which requires countries to gradually increase their ambition, and a new policy proposal to negotiate more frequently. We find that more frequent interactions allow subjects to build trust and cooperation more safely over time. Conversely, subjects in a ratchet-up design tend to become more cautious to protect themselves from free riders. Thus, more frequent revisions of commitments promote cooperation, but the ratchet-up design fails to achieve the same result.

Suggested Citation

  • Ockenfels, Axel & Gallier, Carlo & Sturm, Bodo, 2024. "More frequent commitments promote cooperation, ratcheting does not," ZEW Discussion Papers 24-065, ZEW - Leibniz Centre for European Economic Research.
  • Handle: RePEc:zbw:zewdip:312184
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    More about this item

    Keywords

    Climate change; climate negotiations; cooperation; laboratory experiments; simulations;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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