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Alberto Ansuategi and Marta Escapa
''Is international cooperation on climate change good for the environment?''
( 2004, Vol. 17 No.7 )
In this paper we construct an overlapping generations model with climate-economy interactions, where the world is split into two regions. We resort to numerical simulations of the calibrated model to analyze the effect of international cooperation on both the economy and the climate. The results show that, when we consider short-lived governments and international income transfers are allowed, cooperation may lead in the short run to higher environmental degradation than what it would arise in the non-cooperative scenario.
JEL: Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics: General
Manuscript Received : Oct 11 2004 Manuscript Accepted : Nov 29 2004

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