Adaptation to Climate Change: How Does Heterogeneity in Adaptation Costs Affect Climate Coalitions?

36 Pages Posted: 3 Jun 2014

See all articles by Itziar Lazkano

Itziar Lazkano

University of Wisconsin - Milwaukee - Department of Economics

Walid Marrouch

Lebanese American University; CIRANO

Bruno Nkuiya

University of California, Santa Barbara

Date Written: May 2, 2014

Abstract

We examine how adaptation to climate change affects the incentives to ratify international environmental agreements (IEAs). In particular, we study the effects of two aspects on the incentives to join a coalition. First, we analyze cross-country differences in adaptation costs. Second, we investigate the role of carbon leakage. We find that the incentives to join IEAs remain unchanged with cross-country differences in adaptation when there is no carbon leakage, while these cross-country differences may strengthen the incentives to join IEAs with leakages. Our results emphasize that policies directed at reducing cost differences and carbon leakage may also affect the success and failure of IEAs.

Keywords: adaptation; environmental agreements; cost differences; carbon leakage

JEL Classification: Q50, Q54, C72

Suggested Citation

Lazkano, Itziar and Marrouch, Walid and Nkuiya, Bruno, Adaptation to Climate Change: How Does Heterogeneity in Adaptation Costs Affect Climate Coalitions? (May 2, 2014). CIRANO - Scientific Publications 2014s-29. Available at SSRN: https://ssrn.com/abstract=2444981 or http://dx.doi.org/10.2139/ssrn.2444981

Itziar Lazkano

University of Wisconsin - Milwaukee - Department of Economics ( email )

3210 N. Maryland Avenue, Bolton Hall 802
Bolton Hall 802
Milwaukee, WI 53211
United States

Walid Marrouch (Contact Author)

Lebanese American University ( email )

P.O. Box 13 - 5053
Chouran-Beirut
Beirut, 1102 2801
Lebanon

CIRANO ( email )

1130 Rue Sherbrooke #1400
Montreal, Quebec H3A 2M8
Canada

Bruno Nkuiya

University of California, Santa Barbara ( email )

Bren School
2400 Bren Hall
Santa Barbara, CA 93106
United States

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