Adaptation and the Allocation of Pollution Reduction Costs

Abstract

Le Centre interuniversitaire de recherche en économie quantitative (CIREQ) regroupe des chercheurs dans les domaines de l'économétrie, la théorie de la décision, la macroéconomie et les marchés financiers, la microéconomie appliquée et l'économie expérimentale ainsi que l'économie de l'environnement et des ressources naturelles. Ils proviennent principalement des universités de Montréal, McGill et Concordia. Le CIREQ offre un milieu dynamique de recherche en économie quantitative grâce au grand nombre d'activités qu'il organise (séminaires, ateliers, colloques) et de collaborateurs qu'il reçoit chaque année.

Impact of social externalities on the formation of an international environmental agreement: an exploratory analysis

“…We know that developed countries have a higher gross domestic product per capita and consequently are more susceptible to being damaged, but at the same time these countries have much larger financial and technological means than developing countries to adapt to climate change and lessen its impact. Our assumption is in line with the nascent literature considering not only mitigation when designing an IEA, but also adaptation efforts that aim at reducing the damage cost (see, for example, Benchekroun and Taherkhani, ; Breton and Sbragia, , ; Benchekroun et al., ; Lazkano et al., ; Masoudi and Zaccour, ).…”

Mitigation vs. Adaptation: Analytic Models for Policy Assessment

“…The most obvious avenue for further research is to extend the models to the case of several countries with a competitive and cooperative behavior. It is commonly accepted in the environmental economics [1][2][3][4][5] that mitigation is a public good while the adaptation is specific for separate countries. This extension is imperative for analyzing possible international environmental agreements.…”

“…Several aggregate analytic approaches have been developed to describe pollution mitigation, but a surprisingly smaller number of papers uses an analytic approach to environmental adaptation [1,2,5,7,10,15,29], although adaptation becomes a more attractive option of the environmental protection. Even less papers consider endogenous production, mitigation, and adaptation in one model: the majority of them belong to a popular simulation approach known as the integrated assessment models [1].…”

Games with Adaptation and Mitigation

“…The adaptation-mitigation models can be deterministic or stochastic, static, or dynamic, in continuous or discrete time (including two-or threestage versions). Because of analytic complexity, all models make simplifying assumptions about production, pollution, mitigation, and adaptation [5,6,[9][10][11][12]. Corresponding optimization problems can involve one or several objectives, and one or many players [13].…”

“…A static game of [27] and a dynamic game of [28] include separate endogenous mitigation variable, nevertheless, do not consider adaptation. Paper [11] analyzes a static game of n countries with pollution and adaptation but does not explicitly include mitigation.…”