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Awareness of Climate Change in a Diverse World

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  • Wiesmeth, Hans
  • Weber, Shlomo

Abstract

"Awareness" for a public good is necessary to stimulate voluntary contributions towards the provision of this commodity. This applies in particular to the global reduction of greenhouse gases and its relevance for mitigation of climate change. The success of the new climate agreement to be concluded in Paris in 2015 thus depends on sufficient "awareness" for climate change, but also on the extent of diversity among the participating countries. This papers develops a formal model with diverse countries mitigating climate change. Diversity thereby refers to awareness for global warming, population, GDP per capita and costs of renewable energy sources. The Nash mechanism coordinates individual decisions, and the effect of diversity on equilibrium contributions can be investigated in various ways. The second part of the paper provides rankings of signatories of the Kyoto Protocol regarding awareness for climate change. In these empirical investigations, estimates for awareness are derived from observable data. Some results on the "Environmental Kuznets Curve" and some final remarks conclude the paper.

Suggested Citation

  • Wiesmeth, Hans & Weber, Shlomo, 2015. "Awareness of Climate Change in a Diverse World," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113024, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc15:113024
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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