The climate rent curse: new challenges for burden sharing

Kornek, Ulrike; Steckel, Jan Christoph; Lessmann, Kai; Edenhofer, Ottmar

doi:10.1007/s10784-017-9352-2

Cited by 13 publications

(9 citation statements)

References 79 publications

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“…The Model of International Climate Agreements (MICA) follows the same economic framework as RICE but with different assumptions about costs and benefits. Formally, its main distinction is to include the international goods markets (Lessmann et al 2009;Lessmann and Edenhofer 2011;Kornek et al 2013).…”

Section: Characterization Of the Modelsmentioning

confidence: 99%

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The Stability and Effectiveness of Climate Coalitions

Lessmann

Kornek

Bosetti

et al. 2015

Environ Resource Econ

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We report results from a comparison of numerically calibrated game theoretic integrated assessment models that explore the stability and performance of international coalitions for climate change mitigation. We identify robust results concerning the incentives of different nations to commit themselves to a climate agreement and estimate the extent of greenhouse gas mitigation that can be achieved by stable agreements. We also assess the potential of transfers that redistribute the surplus of cooperation to foster the stability of climate coalitions. In contrast to much of the existing analytical game theoretical literature, we find substantial scope for self-enforcing climate coalitions in most models that close much

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Section: Characterization Of the Modelsmentioning

confidence: 99%

“…A Appendix: Model Factsheets Model: MICA (Model of International Climate Agreements), PIK, Germany Model description:Kornek et al (2013) …”

mentioning

confidence: 99%

The Stability and Effectiveness of Climate Coalitions

Lessmann

Kornek

Bosetti

et al. 2015

Environ Resource Econ

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“…Permit trading in the scenarios analyzed implies huge financial transfers, which however is put into perspective when compared to alternative burden sharing schemes as investigated in section 5. Improved institutions are required for administering financial transfers with care to avoid adverse effects, such as a "climate finance curse" (Jakob et al, 2015, Kornek et al, 2017.…”

Section: Equality-based Burden Sharingmentioning

confidence: 99%

Burden sharing of climate change mitigation: global and regional challenges under shared socio-economic pathways

Leimbach

Giannousakis

2019

Climatic Change

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We analyze the burden sharing of climate stabilization under socio-economic scenario uncertainty and for various burden sharing regimes. For this purpose, we quantify mitigation efforts in terms of emission reductions and mitigation costs for a number of major world regions, considering scenarios with and without climate finance. The influence of socio-economic drivers on the burden sharing is crucial, but has not yet been studied in the context of the most recent scenario framework -the shared socio-economic pathway scenarios (SSPs). Here we show that sustainable development as represented by the SSP1 scenario reduces the challenges of burden sharing and makes it easier to achieve equitable climate policies. In contrast, in a scenario with fossil-fueled development (SSP5), the risk of political infeasibility -measured by the variation of mitigation costs across regions and the amount of implied international transfers -increases with most burden sharing regimes. By a decomposition of mitigation costs, we provide additional insights on how the contribution of cost components (e.g energy investment costs, trade in oil) differs across the SSPs and across regions.

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“…We conduct our study in the Model of International Climate Agreements (MICA), developed by Lessmann et al (2009) and extended by Kornek et al (2017). MICA is a numerically calibrated model of coalition formation encompassing eleven heterogeneous world regions (see Table 7.6) in the Appendix for a description of their makeup): Africa (AFR), China 110 For detailed denition of the regions in MICA and a full model description see Kornek et al (2017). MICA combines an integrated assessment model (IAM) with a coalition formation game.…”

Section: Model Of International Climate Agreementsmentioning

confidence: 99%

How empirical uncertainties influence the stability of climate coalitions

Meya

Kornek

Lessmann

2017

Int Environ Agreements

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This doctoral thesis presents seven research papers in environmental and resource economics. I study how the economic value that society attaches to nature depends on the distribution of income or the provision of environmental goods, within or across generations. To this end, three novel environmental economic models are developed on how the distribution aects aggregated willingness to pay for pure public environmental goods, local environmental goods or natural capital. The analyses show that for many environmental goods the economic value is the higher the more equal incomes or environmental good endowment are distributed. For practical applications theory-based adjustment factors are derived. These allow to estimate societal willingness to pays from secondary data or to conduct inequality-adjustments in cost-benet analysis. In a series of applications to global biodiversity conservation, forest protection in Poland or water quality improvement in the Baltic Sea inequality adjustments are quantied and empirically tested. Turning to international environmental agreements, a simulation study shows that uncertainties about the regional distribution of climate change damages can increase the stability of climate coalitions if transfer schemes are implemented. Finally, a case study on the deepening of the Weser estuary highlights that accounting for environmental costs can substantially change the results of cost-benet analyses in transportation infrastructure planning. Overall, this dissertation shows that the distribution of economic and natural resources within and across generations substantially aects the economic value that society attaches to nature. I thereby contribute to the development of economic methods that aim not only at eciency, but also at equity and distribution, and thus follow the vision of a sustainable development. i c Y , of surveyed population. . . . 214 xii 6.3 Relationship between the transfer factor for income inequality T CV (•) and the ratio of income inequality in the study and policy sites, for Estonia (Sweden) as the study site in the left (right) panel. Each blue dot represents a possible

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The climate rent curse: new challenges for burden sharing

Cited by 13 publications

References 79 publications

The Stability and Effectiveness of Climate Coalitions

The Stability and Effectiveness of Climate Coalitions

Burden sharing of climate change mitigation: global and regional challenges under shared socio-economic pathways

How empirical uncertainties influence the stability of climate coalitions

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