Full presentation in pdf here.
In the paper we show why cooperation among world countries to reduce GHG emissions is possible if targets are not to stringent.
We find that cooperation is possible and profitable but:
- The 2°C target is not supported by cost-benefit analysis even under extreme assumptions on damages and discounting
- Even with more modest targets coalitions are not stable
- International transfers are needed to «bribe in» reluctant countries
Policy implication: be less ambitious when negotiating the post-2020 climate architecture
Caveats:
- Alternative bargaining rules might deliver different results
- Much cheaper mitigation costs might induce more cooperation
- Ethical considerations might be used to assess impacts instead of monetary evaluations of future damages