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Mitigation and the geoengineering threat

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  • Moreno-Cruz, Juan B.

Abstract

Recent scientific advances have introduced the possibility of engineering the climate system to lower ambient temperatures without lowering greenhouse gas concentrations. This possibility has created an intense debate given the ethical, moral and scientific questions it raises. This paper examines the economic issues introduced when geoengineering becomes available in a standard model where strategic interaction leads to suboptimal mitigation. Geoengineering introduces the possibility of technical substitution away from mitigation, but it also affects the strategic interaction across countries: mitigation decisions directly affect geoengineering decisions. With similar countries, I find these strategic effects create greater incentives for free-riding on mitigation, but with asymmetric countries, the prospect of geoengineering can induce inefficiently high levels of mitigation.

Suggested Citation

  • Moreno-Cruz, Juan B., 2015. "Mitigation and the geoengineering threat," Resource and Energy Economics, Elsevier, vol. 41(C), pages 248-263.
    • Handle: RePEc:eee:resene:v:41:y:2015:i:c:p:248-263
    DOI: 10.1016/j.reseneeco.2015.06.001
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    References listed on IDEAS

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    More about this item

    Keywords

    Geoengineering; Mitigation; Strategic interaction;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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