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Negative Emission Technologies and Climate Cooperation

Author

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  • Michela Boldrini
  • Valentina Bosetti
  • Salvatore Nunnari

Abstract

Negative Emissions Technologies (NETs) — a range of methods to remove carbon dioxide from the atmosphere— are a crucial innovation in meeting temperature targets set by international climate agreements. However, mechanisms which undo the adverse consequences of short-sighted actions (as NETs) can fuel substitution effects and crowd out virtuous behaviors (e.g., mitigation efforts). For this reason, the impact of NETs on environmental preservation is an open question among scientists and policy-makers. We model this problem through a novel restorable common-pool resource game and use a laboratory experiment to exogenously manipulate key features of NETs and assess their consequences. We show that crowding out only emerges when NETs are surely available and cheap. The availability of NETs does not allow experimental communities to either conserve the common resource for longer or accrue higher earnings and makes the earnings distribution more unequal.

Suggested Citation

  • Michela Boldrini & Valentina Bosetti & Salvatore Nunnari, 2024. "Negative Emission Technologies and Climate Cooperation," CESifo Working Paper Series 10905, CESifo.
    • Handle: RePEc:ces:ceswps:_10905
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp10905.pdf
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    References listed on IDEAS

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    1. Tasneem, Dina & Engle-Warnick, Jim & Benchekroun, Hassan, 2017. "An experimental study of a common property renewable resource game in continuous time," Journal of Economic Behavior & Organization, Elsevier, vol. 140(C), pages 91-119.
    2. Guillaume R. Fréchette & Sevgi Yuksel, 2017. "Infinitely repeated games in the laboratory: four perspectives on discounting and random termination," Experimental Economics, Springer;Economic Science Association, vol. 20(2), pages 279-308, June.
    3. Emanuel Vespa, 2020. "An Experimental Investigation Of Cooperation In The Dynamic Common Pool Game," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(1), pages 417-440, February.
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    Cited by:

    1. Virginia Cecchini Manara & Eleonora Ciscato & Pietro Guarnieri & Lorenzo Spadoni, 2024. "Back to the Future: an Experiment on Ecological Restoration," Discussion Papers 2024/307, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

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    More about this item

    Keywords

    climate crisis; environmental sustainability; carbon dioxide removal; common-pool resource; free-rider problem; laboratory experiment;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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