Climate Change: Behavioral Responses from Extreme Events and Delayed Damages

CentER Discussion Paper Series No. 2017-024

45 Pages Posted: 4 May 2017

See all articles by Riccardo Ghidoni

Riccardo Ghidoni

University of Milano-Bicocca - Department of Economics, Management & Statistics; Tilburg University - Department of Economics

Giacomo Calzolari

European University Institute - Economics Department (ECO); Centre for Economic Policy Research (CEPR); University of Bologna

Marco Casari

University of Bologna - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: May 2, 2017

Abstract

Understanding how to sustain cooperation in the climate change global dilemma is crucial to mitigate its harmful consequences. Damages from climate change typically occurs after long delays and can take the form of more frequent realizations of extreme and random events. These features generate a decoupling between emissions and their damages, which we study through a laboratory experiment. We find that some decision-makers respond to global emissions, as expected, while others respond to realized damages also when emissions are observable. On balance, the presence of delayed/stochastic consequences did not impair cooperation. However, we observed a worrisome increasing trend of emissions when damages hit with delay.

Keywords: Social dilemma; Experiments; Greenhouse gas; Pollution

JEL Classification: C70; C90; D03; Q54

Suggested Citation

Ghidoni, Riccardo and Calzolari, Giacomo and Casari, Marco, Climate Change: Behavioral Responses from Extreme Events and Delayed Damages (May 2, 2017). CentER Discussion Paper Series No. 2017-024. Available at SSRN: https://ssrn.com/abstract=2962879 or http://dx.doi.org/10.2139/ssrn.2962879

Riccardo Ghidoni (Contact Author)

University of Milano-Bicocca - Department of Economics, Management & Statistics ( email )

Piazza dell’Ateneo Nuovo 1, 20126 Milano
Milano, 20126
Italy

HOME PAGE: http://https://www.unimib.it/riccardo-ghidoni

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Giacomo Calzolari

European University Institute - Economics Department (ECO) ( email )

Villa la Fonte
Via delle fontanelle 18
San Domenico di Fiesole, Florence 50014
Italy

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

University of Bologna ( email )

Piazza Scaravilli 2
I-40126 Bologna
Italy

HOME PAGE: http://sites.google.com/view/giacomo-calzolari

Marco Casari

University of Bologna - Department of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

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