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International Environmental Agreements in the Presence of Adaptation

Author

Listed:
  • Walid Marrouch

    (Lebanese American University, School of Business, Department of Economics and Finance, CIRANO (Center for Interuniversity Research and Analysis on Organizations))

  • Amrita Ray Chaudhuri

    (Department of Economics, CentER, TILEC, Tilburg University, Department of Economics, The University of Winnipeg)

Abstract

We show that adaptive measures undertaken by countries in the face of climate change, apart from directly reducing the damage caused by climate change, may also indirectly mitigate greenhouse gas emissions by increasing the stable size of international agreements on emission reductions. Moreover, we show that the more effective the adaptive measure in terms of reducing the marginal damage from emissions, the larger the stable size of the international environmental agreement. In addition, we show that larger coalitions, in the presence of adaptation, may lead to lower global emission levels and higher welfare.

Suggested Citation

  • Walid Marrouch & Amrita Ray Chaudhuri, 2011. "International Environmental Agreements in the Presence of Adaptation," Working Papers 2011.35, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2011.35
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    Cited by:

    1. Seraina Buob & Gunter Stephan, 2013. "On The Incentive Compatibility Of Funding Adaptation," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(02), pages 1-18.
    2. Lazkano, Itziar & Marrouch, Walid & Nkuiya, Bruno, 2016. "Adaptation to climate change: how does heterogeneity in adaptation costs affect climate coalitions?," Environment and Development Economics, Cambridge University Press, vol. 21(6), pages 812-838, December.
    3. Francesco Furini & Francesco Bosello, 2021. "Accounting for adaptation and its effectiveness in International Environmental Agreements," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(2), pages 467-493, April.
    4. Clemens Heuson & Wolfgang Peters & Reimund Schwarze & Anna-Katharina Topp, 2015. "Voluntary International Climate Finance Under The Post-Kyoto Framework: The Strategic Consequences Of Different Modes Of Funding," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 6(03), pages 1-26.
    5. repec:zbw:hohpro:344 is not listed on IDEAS
    6. David M. McEvoy & Tobias Haller & Esther Blanco, 2022. "The Role of Non-Binding Pledges in Social Dilemmas with Mitigation and Adaptation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(4), pages 685-710, April.
    7. repec:old:wpaper:344 is not listed on IDEAS
    8. Klaus Eisenack & Leonhard Kähler, 2012. "Unilateral emission reductions can lead to Pareto improvements when adaptation to damages is possible," Working Papers V-344-12, University of Oldenburg, Department of Economics, revised Jan 2012.
    9. Soham Baksi & Amrita Ray Chaudhuri, 2016. "International Trade and Environmental Cooperation among Heterogeneous Countries," Departmental Working Papers 2016-03, The University of Winnipeg, Department of Economics.
    10. Miguel Borrero & Santiago J. Rubio, 2022. "An adaptation-mitigation game: does adaptation promote participation in international environmental agreements?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 22(3), pages 439-479, September.
    11. Heuson, Clemens & Gawel, Erik & Gebhardt, Oliver & Hansjürgens, Bernd & Lehmann, Paul & Meyer, Volker & Schwarze, Reimund, 2012. "Fundamental questions on the economics of climate adaptation: Outlines of a new research programme," UFZ Reports 05/2012, Helmholtz Centre for Environmental Research (UFZ).
    12. Finus, Michael & Furini, Francesco & Rohrer, Anna Viktoria, 2021. "The efficacy of international environmental agreements when adaptation matters: Nash-Cournot vs Stackelberg leadership," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    13. Nahid Masoudi & Georges Zaccour, 2018. "Adaptation and International Environmental Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(1), pages 1-21, September.
    14. Heuson, Clemens & Gawel, Erik & Gebhardt, Oliver & Hansjürgens, Bernd & Lehmann, Paul & Meyer, Volker & Schwarze, Reimund, 2012. "Ökonomische Grundfragen der Klimaanpassung: Umrisse eines neuen Forschungsprogramms," UFZ Reports 02/2012, Helmholtz Centre for Environmental Research (UFZ).
    15. Michèle Breton & Lucia Sbragia, 2019. "The Impact of Adaptation on the Stability of International Environmental Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(2), pages 697-725, October.
    16. Vale, Petterson Molina, 2016. "The changing climate of climate change economics," Ecological Economics, Elsevier, vol. 121(C), pages 12-19.
    17. Michèle Breton & Lucia Sbragia, 2017. "Adaptation to Climate Change: Commitment and Timing Issues," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(4), pages 975-995, December.

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    More about this item

    Keywords

    International Environmental Agreements; Adaptation; Coalition Formation; Climate Change;
    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
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other

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