Arvaniti, M., "Self-Enforcing Climate Coalitions for Farsighted Countries: Integrated Analysis of Heterogeneous Countries"

Wednesday, December 20, 2023

Title: "Self-Enforcing Climate Coalitions for Farsighted Countries: Integrated Analysis of  Heterogeneous Countries"

Speaker: Assistant Professor Maria Arvaniti, University of Bologna

Host: Assistant Professor Efthymios Athanasiou, Department of Economics, Athens University of Economics and Business

Time: 15.30 -17.00

Room: A36

Attachments:  PDF of Relevant Paper

Abstact: We study formation of international climate coalitions. Countries are farsighted and rationally predict the consequences of their membership decisions in climate negotiations. Within the context of an integrated assessment model of the economy and the climate, we characterise the equilibrium number of coalitions and their number of signatories independent of certain types of heterogeneity, and show that the resulting treaties are robust to renegotiation. With a richer structure of energies we investigate possible coalition outcomes for a calibrated model. We confirm our heterogeneity results and in contrast to earlier approaches based on internal and external stability, much larger coalitions can be sustained in equilibrium.