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What is fair? An experimental guide to climate negotiations

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  • Brick, Kerri
  • Visser, Martine

Abstract

International commitments to reduce emissions must be negotiated between countries in a manner considered to be fair or equitable. While the burden-sharing principles commonly advocated in climate negotiations reflect different views of what constitutes a fair way to distribute the abatement burden, their use can also be strategically motivated to legitimise a specific bargaining position. In this context, using a threshold public good game with a climate change framing, real monetary incentives and drawing on a sample of individuals from the United States, the European Union, China, India and South Africa, this multi-country study examines the degree to which the use of burden-sharing principles reflects material self-interest. In an initial treatment, participants, who represent the country of which they are a national, choose between various burden-sharing principles. In a subsequent treatment, drawing from Rawls׳ veil of ignorance, participants are unaware of which country they represent and are randomly allocated to a country after making their decision. A comparison of participants׳ choices across these two treatments indicates that the use of the historical and future polluter-pays rules by American and Chinese participants is consistent with material self-interest, or, in other words, self-interested use of burden-sharing principles.

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  • Brick, Kerri & Visser, Martine, 2015. "What is fair? An experimental guide to climate negotiations," European Economic Review, Elsevier, vol. 74(C), pages 79-95.
  • Handle: RePEc:eee:eecrev:v:74:y:2015:i:c:p:79-95
    DOI: 10.1016/j.euroecorev.2014.11.010
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    1. > Environmental and Natural Resource Economics > Climate economics > International agreements > Experimental evidence

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    1. Ilona Reindl, 2022. "Wealth and Vulnerability to Climate Change: An Experimental Study on Burden Sharing among Heterogeneous Agents," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(4), pages 791-823, August.
    2. Fanghella, Valeria & Faure, Corinne & Guetlein, Marie-Charlotte & Schleich, Joachim, 2023. "What's in it for me? Self-interest and preferences for distribution of costs and benefits of energy efficiency policies," Ecological Economics, Elsevier, vol. 204(PA).
    3. Calzolari, Giacomo & Casari, Marco & Ghidoni, Riccardo, 2018. "Carbon is forever: A climate change experiment on cooperation," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 169-184.
    4. Waichman, Israel & Requate, Till & Karde, Markus & Milinski, Manfred, 2021. "Challenging conventional wisdom: Experimental evidence on heterogeneity and coordination in avoiding a collective catastrophic event," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    5. Goeschl, Timo & Kettner, Sara Elisa & Lohse, Johannes & Schwieren, Christiane, 2015. "What do we learn from public good games about voluntary climate action? Evidence from an artefactual field experiment," Working Papers 0595, University of Heidelberg, Department of Economics.
    6. Moritz A. Drupp & Ulrike Kornek & Jasper N. Meya & Lutz Sager, 2021. "Inequality and the Environment: The Economics of a Two-Headed Hydra," CESifo Working Paper Series 9447, CESifo.
    7. Jo, Ara & Carattini, Stefano, 2021. "Trust and CO2 emissions: Cooperation on a global scale," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 922-937.
    8. Bouma, J.A. & Nguyen, Binh & van der Heijden, Eline & Dijk, J.J., 2018. "Analysing Group Contract Design Using a Lab and a Lab-in-the-Field Threshold Public Good Experiment," Discussion Paper 2018-049, Tilburg University, Center for Economic Research.
    9. Tobias Börger & Nick Hanley & Robert J. Johnston & Keila Meginnis & Tom Ndebele & Ghamz E. Ali Siyal & Frans de Vries, 2024. "Equity preferences and abatement cost sharing in international environmental agreements," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(1), pages 416-441, January.
    10. Pedro Naso; Tania Theoduloz; Nicholas Tyack; Dambala Gelo; Mare Sarr; Timothy Swanson, 2021. "Using Information to Improve Global Cooperation: A Climate Change Experiment," CIES Research Paper series 72-2021, Centre for International Environmental Studies, The Graduate Institute.
    11. Lea S. Svenningsen, 2019. "Social preferences for distributive outcomes of climate policy," Climatic Change, Springer, vol. 157(2), pages 319-336, November.
    12. Groh, Elke D. & Ziegler, Andreas, 2018. "On self-interested preferences for burden sharing rules: An econometric analysis for the costs of energy policy measures," Energy Economics, Elsevier, vol. 74(C), pages 417-426.
    13. Klaudijo Klaser & Lorenzo Sacconi & Marco Faillo, 2021. "John Rawls and compliance to climate change agreements: insights from a laboratory experiment," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 21(3), pages 531-551, September.
    14. Roggenkamp, Hauke C., 2024. "Revisiting ‘Growth and Inequality in Public Good Provision’—Reproducing and Generalizing Through Inconvenient Online Experimentation," OSF Preprints 6rn97, Center for Open Science.
    15. Karen Evelyn Hauge & Snorre Kverndokk & Andreas Lange, 2021. "Why People Oppose Trade Institutions - On Morality, Fairness and Risky Actions," CESifo Working Paper Series 9456, CESifo.
    16. Goeschl, Timo & Kettner, Sara Elisa & Lohse, Johannes & Schwieren, Christiane, 2020. "How much can we learn about voluntary climate action from behavior in public goods games?," Ecological Economics, Elsevier, vol. 171(C).
    17. Elke D. Groh & Andreas Ziegler, 2017. "On self-interested preferences for burden sharing rules: An econometric analysis for the costs of energy policy measures," MAGKS Papers on Economics 201754, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

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