Discussion Papers no. 505

Pareto-efficient climate agreements

Recent contributions show that climate agreements with broad participation can be implemented as weakly renegotiation-proof equilibria in simple models of greenhouse gas abatement where each country has a binary choice between cooperating (i.e., abate emissions) or defecting (no abatement). Here we show that this result carries over to a model where countries have a continuum of emission choices. Indeed, a Pareto-efficient climate agreement can always be implemented as a weakly renegotiation-proof equilibrium, for a sufficiently high discount factor. This means that one need not trade-off a "narrow but deep" treaty with a "broad but shallow" treaty.

Om publikasjonen

Tittel

Pareto-efficient climate agreements

Ansvarlige

Geir B. Asheim, Bjart Holtsmark

Serie og -nummer

Discussion Papers no. 505

Utgiver

Statistics Norway

Emne

Discussion Papers

Antall sider

14

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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