Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/211173 
Year of Publication: 
2019
Series/Report no.: 
Working Paper No. 014.2019
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
The global nature of the climatic challenge requires a high level of cooperation among agents, especially since most of the related coping strategies produce some kind of externalities toward others. Whether they are positive or negative, the presence of externalities may lead the system towards Pareto-dominated states. In this work, we study under and over-adoption of environmental adaptation technologies which enhance environmental quality for the individual while transferring externalities to other agents. We distinguish adaptation technologies between maladaptation and mitigation ones, depending on the sign of the externalities. In particular, we show that over adoption may occur for maladaptive technologies, whereas under-adoption may occur in case of mitigation. We study a model with two regions at different stages of development, which allows us to draw considerations on well-being consequences of environmental dumping.
Subjects: 
Adaptation
Negative Externalities
Evolutionary Dynamics
Public Good Game
Environmental Dumping
JEL: 
C70
D62
O13
O40
Q20
Document Type: 
Working Paper

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