Logo
DeutschClear Cookie - decide language by browser settings
Schmidt, Robert C. and Strausz, Roland (November 2011): The Timing of Climate Agreements under Multiple Externalities. SFB/TR 15 Discussion Paper No. 366
[img]
Preview

PDF

347kB

Abstract

We study the potential of cooperation in global emission abatements with multiple externalities. Using a two-country model without side-payments, we identify the strategic effects under different timing regimes of cooperation. We obtain a positive complementarity effect of long-term cooperation in abatement on R&D levels that boosts potential bene?t of long-term cooperation and a redistributive effect that destabilizes long-term cooperation when countries are asymmetric. We show that whether and what type of cooperation is sustainable, depends crucially on the kind rather than on the magnitude of asymmetries.