Two Margins of Climate Cooperation: Emissions and Coalition Membership under Tipping

Yongyang Cai, Yaofeng Cui, Hongbo Duan and Lei Zhu

Papers from arXiv.org

Abstract: We study climate coalition stability with endogenous temperature and stochastic tipping. In our dynamic game, rising temperature widens the emissions gap between members and nonmembers, shrinking stable coalitions over time. The threat of tipping strengthens free-riding, raising emissions and reducing coalition size; its occurrence also contracts coalitions numerically. Advanced regions form the core, while emerging & developing regions drive membership variation. Comparing policy instruments, connection (internal incentives) and sanctions (external penalties) sustain similar coalitions, but connection raises aggregate payoffs, whereas sanctions achieve larger emissions cuts. As tipping approaches, this trade-off intensifies, making the optimal institutional design state-dependent.

Date: 2025-06, Revised 2026-09
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://arxiv.org/pdf/2506.16162 Latest version (application/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:arx:papers:2506.16162

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().