Inequality, Communication and the Avoidance of Disastrous Climate Change

Alessandro Tavoni (), Astrid Dannenberg, Giorgos Kallis () and Andreas Loeschel
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Andreas Loeschel: Centre for European Economic Research, Mannheim, Germany
Authors registered in the RePEc Author Service: Andreas Löschel

CCEP Working Papers from Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University

Abstract: International efforts to provide global public goods often face the challenges of coordinating national contributions and distributing costs equitably in the face of uncertainty, inequality, and free-riding incentives. In an experimental setting, we distribute endowments unequally among a group of people who can reach a fixed target sum through successive money contributions, knowing that if they fail they will lose all their remaining money with 50% probability. We find that inequality reduces the prospects of reaching the target, but that communication increases success dramatically. Successful groups tend to eliminate inequality over the course of the game, with rich players signalling willingness to redistribute early on. Our results suggest that coordinative institutions and early redistribution from richer to poorer nations may widen our window of opportunity to avoid global climate calamity.

JEL-codes: C92 Q54 (search for similar items in EconPapers)
Date: 2011-03
New Economics Papers: this item is included in nep-ene, nep-env and nep-exp
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Citations: View citations in EconPapers (130)

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http://ccep.anu.edu.au/data/2011/pdf/wpapers/CCEP1103Tavoni.pdf (application/pdf)

Related works:
Working Paper: Inequality, Communication and the Avoidance of Disastrous Climate Change (2011)
Working Paper: Inequality, communication and the avoidance of disastrous climate change (2011)
Working Paper: Inequality, communication and the avoidance of disastrous climate change (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:een:ccepwp:1103

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