Arbeitspapier
Global climate change and the funding of adaptation
Mitigation and adaptation are the most important strategies in combating global climate change. It is expected that in a post Kyoto world industrialized countries have to engage in greenhouse gas abatement, and to support developing countries in adapting to climate change. Within the framework of a non-cooperative Nash game we analyze, whether funding adaptation is incentive compatible in the sense that it stipulates mitigation. In particular it is the aim of this paper to discuss: (1) How does foreign funding of adaptation affect mitigation and regional welfare? (2) Under which conditions is it economically rational to fund adaptation in developing regions? We find that, if strict complementarity between adaptation and mitigation exists, funding adaptation increases both global mitigation and the donors' welfare, but negatively affects the recipients' welfare. The later only benefit, if maladaptation or adaptation, which is neutral to mitigation, is funded, which, however, makes the donors worse off.
- Language
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Englisch
- Bibliographic citation
-
Series: Discussion Papers ; No. 08-04
- Classification
-
Wirtschaft
Noncooperative Games
International Conflicts; Negotiations; Sanctions
Climate; Natural Disasters and Their Management; Global Warming
- Subject
-
climate change
mitigation and adaptation
funding of private goods
Klimawandel
Wirtschaftliche Anpassung
Umweltschutz
Öffentliche Güter
Nash-Gleichgewicht
Nichtkooperatives Spiel
Theorie
- Event
-
Geistige Schöpfung
- (who)
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Buob, Seraina
Stephan, Gunter
- Event
-
Veröffentlichung
- (who)
-
University of Bern, Department of Economics
- (where)
-
Bern
- (when)
-
2008
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Buob, Seraina
- Stephan, Gunter
- University of Bern, Department of Economics
Time of origin
- 2008
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