Trust and CO2 emissions: cooperation on a global scale

Ara Jo and Stefano Carattini

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Although the effect of trust on local cooperation is well-documented, little is known about how trust influences global cooperation. Building on a large body of theoretical and experimental literature, we hypothesize that trust shared in a society may positively affect global cooperative behavior. We provide empirical evidence in the context of climate change that an increase in trust is associated with a larger reduction in CO2 emissions across countries, controlling for country fixed effects and a number of time-varying factors. As a falsification test, we estimate the relationship on an earlier period when there was no concern of man-made climate change (before the 1980s) and find no impact of trust on CO2 emissions during that period.

Keywords: climate change; cooperation; trust (search for similar items in EconPapers)
JEL-codes: N50 Q54 Z10 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2021-10-01
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env, nep-exp and nep-soc
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Citations: View citations in EconPapers (4)

Published in Journal of Economic Behavior and Organization, 1, October, 2021, 190, pp. 922 - 937. ISSN: 0167-2681

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http://eprints.lse.ac.uk/112163/ Open access version. (application/pdf)

Related works:
Journal Article: Trust and CO2 emissions: Cooperation on a global scale (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:112163

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