International Climate Finance and its Influence on Fairness and Policy

Abstract:     
Besides costs and benefits, fairness aspects tend to influence negotiating parties’ willingness to join an international agreement on climate change mitigation. Fairness is largely considered to improve the prospects of success of international negotiations and hence measures raising fairness perception might – in turn – help to bring about effective cooperative international climate change mitigation. We consider the influences present international support of climate policy in developing countries exerts on fairness perception and how this again might affect international negotiations. In doing so, we distinguish between fairness perception which is based on historical experiences and perception which is based on conjectures about opponents’ intentions. By identifying beneficial components of current support schemes, lessons can be learned for designing new schemes like the Green Climate Fund.

Number of Pages in PDF File: 27

Keywords: adaptation, chicken game, climate policy, fairness, international agreements, mitigation, reciprocity, transfers

JEL Classification: F53, H87, Q54

working papers series