The Role of Proactive Adaptation in International Climate Change Mitigation Agreements

24 Pages Posted: 30 May 2011

See all articles by Kelly Chloe de Bruin

Kelly Chloe de Bruin

University of Umea - Centre for Environmental and Resource Economics

Hans-Peter Weikard

Wageningen UR - School of Social Sciences

Rob Dellink

Wageningen UR - Environmental Economics and Natural Resources Group; Organization for Economic Co-Operation and Development (OECD)

Date Written: May 27, 2011

Abstract

This paper investigates the role of proactive adaptation in international mitigation coalition formation. Adaptation is introduced into a three stage cartel game of coalition formation. We analytically derive the optimal level of mitigation and proactive adaptation for the singletons and coalition members. We introduce the AD-STACO model which is constructed based on the STACO model, which is an applied three-stage cartel formation model with 12 heterogeneous regions. Simulating all possible coalitions (4084) and checking for internal and external stability, we investigate how different levels of proactive adaptation will affect the payoffs in Grand coalition and the incentives to free ride. We examine which stable coalitions are found with different levels of proactive adaptation and whether regions can gain from overadaptation in the best performing stable coalition. We find that though payoffs increase in the Grand coalition with lower adaptation, incentives to leave increase. Coalition members can increase their payoffs through overadaptation.

Keywords: N/A

JEL Classification: Q54

Suggested Citation

de Bruin, Kelly Chloe and Weikard, Hans-Peter and Dellink, Rob, The Role of Proactive Adaptation in International Climate Change Mitigation Agreements (May 27, 2011). CERE Working Paper No. 2011:9. Available at SSRN: https://ssrn.com/abstract=1854288 or http://dx.doi.org/10.2139/ssrn.1854288

Kelly Chloe De Bruin (Contact Author)

University of Umea - Centre for Environmental and Resource Economics ( email )

UmeƄ, S-901 87
Sweden

Hans-Peter Weikard

Wageningen UR - School of Social Sciences ( email )

De Leeuwenborch
Hollandseweg 1
6706 KN Wageningen
Netherlands
+31 317 48 24 94 (Phone)
+31 317 48 49 33 (Fax)

Rob Dellink

Wageningen UR - Environmental Economics and Natural Resources Group ( email )

P.O. Box 8130
Wageningen, 6700 EW
Netherlands
+31 (0)317 4 82009 (Phone)
+31 (0)317 4 84933 (Fax)

HOME PAGE: http://www.sls.wau.nl/enr/staff/dellink/

Organization for Economic Co-Operation and Development (OECD) ( email )

Paris
France

HOME PAGE: http://www.oecd.org/env/cc/econ

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