International Support of Climate Change Policies in Developing Countries: Strategic, Moral and Fairness Aspects

Basque Centre for Climate Change Working Paper No. 2011-02

33 Pages Posted: 12 Feb 2011

See all articles by Dirk T. G. Rübbelke

Dirk T. G. Rübbelke

Technische Universität Bergakademie Freiberg

Multiple version iconThere are 2 versions of this paper

Date Written: February 2010

Abstract

International transfers in climate policy channeled from the industrialized to the developing world either support the mitigation of climate change or the adaptation to global warming. From an allocative efficiency point of view, transfers supporting mitigation tend to be Pareto-improving whereas this is not very likely in the case of adaptation support. We illustrate this by regarding transfer schemes currently applied under the UN Framework Convention on Climate Change (UNFCCC) and the Kyoto framework.

However, if we enrich the analysis by integrating distributional aspects, we find that international adaptation funding may help both developing and developed world. Interestingly this is not due to altruistic incentives, but due to follow-up effects on international negotiations on climate change mitigation. We argue that the lack of fairness perceived by developing countries in the international climate policy arena can be reduced by the support of adaptation in these countries. As we show – taking into account different fairness concepts – this might raise the prospects of success in international negotiations on climate change. Yet, we find that the influence of transfers may induce different fairness effects on climate change mitigation negotiations to run counter.

We discuss whether current transfer schemes under the UNFCCC and the Kyoto framework adequately serve the distributive and allocative objectives pursued in international climate policy.

Keywords: adaptation, climate change, fairness, Global Environmental Facility, international climate policy, mitigation, reciprocity, transfers

JEL Classification: H41, H87, Q54, Q56

Suggested Citation

Rübbelke, Dirk T. G., International Support of Climate Change Policies in Developing Countries: Strategic, Moral and Fairness Aspects (February 2010). Basque Centre for Climate Change Working Paper No. 2011-02 . Available at SSRN: https://ssrn.com/abstract=1759206 or http://dx.doi.org/10.2139/ssrn.1759206

Dirk T. G. Rübbelke (Contact Author)

Technische Universität Bergakademie Freiberg ( email )

Freiberg, 09599
Germany

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