Dynamic cooperation with tipping points in the climate system

C-Tier
Journal: Oxford Economic Papers
Year: 2017
Volume: 69
Issue: 2
Pages: 388-409

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Tipping points in the climate system can stabilize climate treaties; the stabilizing effect, however, often vanishes when the location of the threshold is uncertain. I demonstrate that in a dynamic setting, additional welfare gains can improve the prospects of cooperation. In the model, intertemporal efficiency gains result from abatement costs that are convex in each period. While non-cooperative countries tend to postpone their abatement efforts until the last minute as a result of the free-rider incentive, cooperation allows countries to allocate their abatement efforts efficiently over time. I show that cooperation often improves the outcome substantially, and arises endogenously in the model. In some cases, a ‘threshold-equilibrium’ emerges, where the stable coalition size is just large enough for the signatories to invest in avoiding the catastrophe.

Technical Details

RePEc Handle
repec:oup:oxecpp:v:69:y:2017:i:2:p:388-409.
Journal Field
General
Author Count
1
Added to Database
2026-01-29