Resource Center

Advanced Search
Technical Papers
Working Papers
Research Memoranda
GTAP-L Mailing List
GTAP FAQs
CGE Books/Articles
Important References
Submit New Resource

GTAP Resources: Resource Display

GTAP Resource #3533

"A good opening: the key to make the most of unilateral action"
by De Cian, Enrica and Valentina Bosetti


Abstract
We examine the reaction of non-signatory countries to partial cooperation on climate change. Although free- riding incentives lead countries that do not participate in the environmental agreement to increase their emissions, under some conditions technology advancements within the coalition spill over to non-signatories and induce them to reduce, rather than increase, their emissions. We investigate these conditions analytically, using a Stackelberg game, and numerically, using a calibrated integrated assessment model. Results indicate that if a partial coalition, composed of OECD countries, cooperates to reduce their 2050 emissions between 30 and 35% below 2005 levels, the technology effect would prevail. This suggests that cooperating countries can strategically choose their unilateral climate objective so as to induce a virtuous behaviour in non-signatories countries. Interestingly, in the short-run these reductions are comparable with the Copenhagen pledges for Annex I countries. Conversely, had the OECD coalition embraced a more demanding target (e.g. 2050 emissions 50% below their 2005 levels), then the leakage effect would prevail and non-signatories would erode the coalition’s environmental effectiveness. To mitigate the risk of carbon leakage associated with more ambitious targets, credible future commitments for developing countries could be set, as they would reduce lock-in in carbon intense technologies.


Resource Details (Export Citation) GTAP Keywords
Category: 2011 Conference Paper
Status: Published
By/In: Presented at the 14th Annual Conference on Global Economic Analysis, Venice, Italy
Date: 2010
Version: 1
Created: De Cian, E. (4/12/2011)
Updated: De Cian, E. (4/12/2011)
Visits: 1,594
- Climate change policy


Attachments
If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.


Public Access
  File format 2011 Conference Paper  (572.7 KB)   Replicated: 0 time(s)


Restricted Access
No documents have been attached.


Special Instructions
No instructions have been specified.


Comments (0 posted)
You must log in before entering comments.

No comments have been posted.