A Dynamic Analysis of Climate Change Mitigation with Endogenous Number of Contributors: Loose vs Tight Cooperation

Luca Colombo, Paola Labrecciosa and Ngo Long

No HIAS-E-92, Discussion paper series from Hitotsubashi Institute for Advanced Study, Hitotsubashi University

Abstract: We propose a dynamic model of climate change abatement in which the number of contributors is endogenous and thus may differ between two modes of cooperation, namely, loose vs tight. In the tight mode of cooperation, each member is prescribed a specific target, whereas in the loose one, members choose their own abatement levels as Nash players. Conditions exist such that the incentive to free ride is lower and the number of contributors is higher in the loose cooperation framework, and this can lead to higher welfare, both in the steady state and along the transition path. Our theoretical results suggest that the loose coalition mode, such reflected in the spirit of the Paris International COP21 Conference on Climate Change, by attracting more participants, could turn out to be more effective in reducing emissions than the Kyoto Protocol.

Keywords: differential games; pollution abatement; climate change; mode of cooperation (search for similar items in EconPapers)
JEL-codes: C73 Q2 Q52 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2019-12
New Economics Papers: this item is included in nep-ene, nep-env and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/30916/070_hiasDP-E-92.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hit:hiasdp:hias-e-92

Access Statistics for this paper

More papers in Discussion paper series from Hitotsubashi Institute for Advanced Study, Hitotsubashi University Contact information at EDIRC.
Bibliographic data for series maintained by Digital Resources Section, Hitotsubashi University Library ().