Negotiating Climate Cooperation Data and Code

DOI

International climate cooperation needs to be negotiated among sovereign countries. The key to cooperation, and to countervail free riding, is reciprocity. Using game theory and a human subject experiment, we show that reciprocity can be built into the negotiation design. Human players negotiating a reciprocal common commitment are substantially more successful in promoting cooperation than when negotiating individual commitments. Moreover, focusing on a uniform common commitment strongly facilitates agreement, as compared to negotiating a vector of commitments, one for each player. Because a carbon price is a natural candidate for a uniform common commitment, our findings suggest that international climate negotiations should focus on reciprocal carbon pricing. Economists advocate carbon pricing for its cost efficiency, yet the role of carbon pricing for promoting cooperation could be at least as important.

Identifier
DOI https://doi.org/10.7805/climate-negotiations
Metadata Access https://api.datacite.org/dois/10.7805/climate-negotiations
Provenance
Creator Schmidt, Klaus M.; Ockenfels, Axel
Publisher LMU-ifo Economics & Business Data Center (EBDC)
Contributor Ifo Institut – Leibniz-Institut Für Wirtschaftsforschung An Der Universität München E.V.
Publication Year 2020
OpenAccess true
Representation
Language English
Resource Type Dataset
Version 1
Discipline Social Sciences