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International climate negotiations take place in a setting where uncertainties regarding the impacts of climate change are very large. In this paper, we examine the influence of increasing the probability and impact of large climate change damages, also known as the 'fat tail', on the formation...
Persistent link: https://www.econbiz.de/10009690831
Persistent link: https://www.econbiz.de/10010207868
International climate negotiations take place in a setting where uncertainties regarding the impacts of climate change are very large. In this paper, we examine the influence of increasing the probability and impact of large climate change damages, also known as the ‘fat tail’, on the...
Persistent link: https://www.econbiz.de/10013315816
that the only non-trivial coalition structure with a relatively high Stability Likelihood (around 25 percent) is a … coalition between the European Union and Japan, though quantitative results depend especially on the variance in regional …
Persistent link: https://www.econbiz.de/10014063185
I examine climate coalition formation in a public-good game of emission abatement under uncertainty and characterise … the stable coalition structure and the unique number of free riders at each expected value of the social benefit of the …. This result resolves the small-coalition paradox in the literature on stochastic International Environmental Agreements …
Persistent link: https://www.econbiz.de/10014076322
Persistent link: https://www.econbiz.de/10009663724
If the threshold that triggers climate catastrophe is known with certainty, and the benefits of avoiding catastrophe are high relative to the costs, treaties can easily coordinate countries' behavior so as to avoid the threshold. Where the net benefits of avoiding catastrophe are lower, treaties...
Persistent link: https://www.econbiz.de/10009684058
Persistent link: https://www.econbiz.de/10003359973
Persistent link: https://www.econbiz.de/10010209789
If the threshold that triggers climate catastrophe is known with certainty, and the benefits of avoiding catastrophe are high relative to the costs, treaties can easily coordinate countries’ behavior so as to avoid the threshold. Where the net benefits of avoiding catastrophe are lower,...
Persistent link: https://www.econbiz.de/10013315826