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Identifier to cite or link to this item: https://hdl.handle.net/10086/30916

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Title
A Dynamic Analysis of Climate Change Mitigation with Endogenous Number of Contributors: Loose vs Tight Cooperation
Creator
Creator Name
Colombo, Luca Colombo, Luca
Affiliation
Affiliation Name
Deakin University
Creator Name
Labrecciosa, Paola Labrecciosa, Paola
Affiliation
Affiliation Name
Monash University
Creator Name
Long, Ngo Van Long, Ngo Van
Affiliation
Affiliation Name
McGill University
Affiliation
Affiliation Name
Hitotsubashi University
Editor
Contributor Name
Hitotsubashi Institute for Advanced Study, Hitotsubashi University
Key Word
differential games
pollution abatement
climate change
mode of cooperation
JEL
Q2
Q52
C73
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.
Publisher
Hitotsubashi Institute for Advanced Study, Hitotsubashi University
Issued Date
2019-12
Language
English(eng)
Resource Type
technical report
Version Type
VoR
Is Part OfRelation -
Related Title
Discussion paper series ; No. HIAS-E-92
Number of Pages
27
Appears in Collections
Discussion paper series / Hitotsubashi Institute for Advanced Study, Hitotsubashi University
URL
https://hdl.handle.net/10086/30916