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Published on: September 29, 2023
Focusing climate negotiations on a uniform common commitment can promote cooperation
Klaus M Schmidt1,2,3, Axel Ockenfels4,5
1Department of Economics, University of Munich, 80539 Munich, Germany; klaus.schmidt@lmu.de.
Negotiating a uniform common commitment, like a minimum carbon price, significantly boosts international cooperation on climate change. This approach proves more effective than individual or tailored commitments, especially when enforced.
Area of Science:
- Environmental Economics
- Game Theory
- International Relations
Background:
- International cooperation is crucial for addressing global challenges like climate change.
- Existing agreements (Paris Agreement, Kyoto Protocol) have limitations in achieving ambitious cooperation.
- A proposed solution involves shifting negotiation focus to uniform common commitments.
Purpose of the Study:
- To provide experimental evidence for the effectiveness of uniform common commitments in international negotiations.
- To compare the success of uniform common commitments against individual and tailored commitments.
Main Methods:
- Game theoretical analysis.
- Experiments with human subjects negotiating contributions to a public good.
- Comparison of treatments with enforceable and self-enforcing agreements.
Main Results:
- Negotiating a uniform common commitment leads to more ambitious cooperation than individual or tailored commitments.
- This holds true for both enforceable and self-enforcing agreement scenarios.
- Uniform common commitments are most effective when enforced.
Conclusions:
- Uniform common commitments, such as a uniform minimum carbon price, are a superior strategy for fostering international cooperation.
- Experimental evidence supports the theoretical conjecture that this approach enhances cooperation.
- Enforcement mechanisms further amplify the benefits of uniform common commitments.
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