Climate Policy Negotiations with Incomplete Information
16 Pages Posted: 14 Dec 2011 Last revised: 14 Apr 2012
Date Written: December 9, 2011
We analyze bargaining over international climate agreements in a setting with incomplete information about abatement costs. Unilateral commitment to high abatement reduces the gains from global cooperation. This reduces the probability of reaching efficient international environmental agreements.
Keywords: mitigation, international climate agreements, bargaining, unilateral advances
JEL Classification: Q54, Q58, F53, H41
Suggested Citation: Suggested Citation