Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105021
Authors: 
Ebert, Udo
Welsch, Heinz
Year of Publication: 
2011
Series/Report no.: 
Wirtschaftswissenschaftliche Diskussionspapiere V-332-11
Abstract: 
This paper studies the influence of productivity, pollution sensitivity, and adaptive capacity on optimal mitigation and adaptation in a two country global pollution model. We investigate the effects of changes of these parameters on the allocation of emissions, adaptation expenditures, and welfare. In our analysis we distinguish between cooperative and noncooperative behavior. Our findings imply that unilateral improvements in productivity and adaptive capacity have strategic significance and do not necessarily lead to mutual welfare improvements. They raise the emissions not only in the country where the technological improvement takes place, but also globally. An improvement in global welfare is guaranteed only under cooperative behavior with respect to emission and adaptation choices.
Subjects: 
Global pollution
adaptation
mitigation
cooperative behavior
Nash equilibrium
comparative statics
JEL: 
Q58
Q54
Document Type: 
Working Paper

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