Adaptation for mitigation

Hiroaki Sakamoto, Masako Ikefuji and Jan Magnus ()

Discussion papers from Graduate School of Economics , Kyoto University

Abstract: This paper develops a two-region (North and South) dynamic model in which the accumulation of human capital is negatively influenced by the global stock of pollution. By characterizing the equilibrium strategy of each region we show that the regions’ best responses can be strategic complements through a dynamic complementarity effect. The model is then used to analyze the impact of adaptation assistance from North to South. It is shown that North’s unilateral assistance to South (thus enhancing South’s adaptation capacity) can facilitate pollution mitigation in both regions, especially when the assistance is targeted at human capital protection. Pollution might increase in the short run, but in the long run the level of pollution will decline. The adaptation assistance we propose is Pareto improving and incentive compatible.

Keywords: financialization; Climate change, Mitigation, Adaptation, Human capital, Strategic complements (search for similar items in EconPapers)
JEL-codes: D91 Q54 Q58 (search for similar items in EconPapers)
Date: 2017-02
New Economics Papers: this item is included in nep-env
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http://www.econ.kyoto-u.ac.jp/dp/papers/e-16-014.pdf (application/pdf)

Related works:
Journal Article: Adaptation for Mitigation (2020)
Working Paper: Adaptation for Mitigation (2014)
Working Paper: Adaptation for Mitigation (2014)
Working Paper: Adaptation for Mitigation (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:kue:epaper:e-16-014

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