Adaptation and Mitigation in Global Pollution Problems: Economic Impacts of Productivity, Sensitivity and Adaptive Capacity

Udo Ebert and Heinz Welsch

No V-332-11, Working Papers from University of Oldenburg, Department of Economics

Abstract: This paper studies the influence of productivity, pollution sensitivity, and adaptive capacity on optimal mitigation and adaptation in a two country global pollution model. We investigate the effects of changes of these parameters on the allocation of emissions, adaptation expenditures, and welfare. In our analysis we distinguish between cooperative and noncooperative behavior. Our findings imply that unilateral improvements in productivity and adaptive capacity have strategic significance and do not necessarily lead to mutual welfare improvements. They raise the emissions not only in the country where the technological improvement takes place, but also globally. An improvement in global welfare is guaranteed only under cooperative behavior with respect to emission and adaptation choices.

Keywords: Global pollution; adaptation; mitigation; cooperative behavior; Nash equilibrium; comparative statics (search for similar items in EconPapers)
JEL-codes: Q54 Q58 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2011-02, Revised 2011-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published in Oldenburg Working Papers V-332-11

Downloads: (external link)
http://www.vwl.uni-oldenburg.de/download/V-332-11.pdf First version, 2011 (application/pdf)

Related works:
Journal Article: Adaptation and Mitigation in Global Pollution Problems: Economic Impacts of Productivity, Sensitivity, and Adaptive Capacity (2012)
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:old:dpaper:332

Access Statistics for this paper

More papers in Working Papers from University of Oldenburg, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Catharina Schramm ().