Adaptation to Climate Change: How does Heterogeneity in Adaptation Costs Affect Climate Coalitions?Environment and Development Economics (2016)
Adaptation costs to climate change vary widely across countries, especially between developed and developing countries. Adaptation costs also influence a country's decision to abate and join international environmental
agreements (IEAs). In this paper, we study how these cost differences affect participation incentives. Our model identifies two channels through which adaptation affects free-riding incentives: carbon leakage and cost asymmetry in adaptation. In contrast to the common view, we find that the presence of adaptation is not necessarily an impediment to cooperation on abatement. We also present conditions under which adaptation can strengthen or weaken free-riding incentives. Our results serve as a cautionary tale to policymakers and suggest that policies directed at reducing carbon leakage and/or cost differences between developed and developing countries may also affect the success and failure of IEAs.
Publication DateWinter 2016
Citation InformationItziar Lazkano, Walid Marrouch and Bruno Nkuiya. "Adaptation to Climate Change: How does Heterogeneity in Adaptation Costs Affect Climate Coalitions?" Environment and Development Economics (2016)
Available at: http://works.bepress.com/bruno-nkuiya/2/