Climate policy commitment devices
We develop a dynamic resource extraction game that mimics the global multi-generation planning problem for climate change and fossil fuel extraction. We implement the game under different conditions in the laboratory. Compared to a "libertarian" baseline condition, we find that policy inte...
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| Main Authors: | , , , |
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| Format: | Book/Monograph Working Paper |
| Language: | English |
| Published: |
Milano
Fondazione Eni Enrico Mattei
September 2017
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| Series: | Nota di lavoro / Fondazione Eni Enrico Mattei Economic Theory
2017, 49 |
| In: |
Working paper (2017, 49)
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| Subjects: | |
| Online Access: | Resolving-System, kostenfrei, Volltext: http://hdl.handle.net/10419/177243 Verlag, kostenfrei, Volltext: http://www.feem.it/en/publications/feem-working-papers-note-di-lavoro-series/climate-policy-commitment-devices/ Verlag, kostenfrei, Volltext: http://www.feem.it/m/publications_pages/ndl2017-049.pdf 
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| Author Notes: | Sebastian Dengler, Reyer Gerlagh, Stefan T. Trautmann, Gijs van de Kuilen |
| Summary: | We develop a dynamic resource extraction game that mimics the global multi-generation planning problem for climate change and fossil fuel extraction. We implement the game under different conditions in the laboratory. Compared to a "libertarian" baseline condition, we find that policy interventions that provide a costly commitment device or reduce climate threshold uncertainty reduce resource extraction. We also study two conditions to assess the underlying social preferences and the viability of ecological dictatorship. Our results suggest that climate-change policies that focus on investments that lock the economy into carbon-free energy sources provide an important commitment device in the intertemporal cooperation problem. |
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| Physical Description: | Online Resource |