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Environmental Modeling & Assessment

, Volume 17, Issue 1–2, pp 149–162 | Cite as

The Benefits of Cooperation Under Uncertainty: the Case of Climate Change

  • Thierry BréchetEmail author
  • Julien Thénié
  • Thibaut Zeimes
  • Stéphane Zuber
Article

Abstract

This article presents an analysis of the behaviour of countries defining their climate policies in an uncertain context. The analysis is made using the S-CWS model, a stochastic version of an integrated assessment growth model. The model includes a stochastic definition of the climate sensitivity parameter. We show that the impact of uncertainty on policy design critically depends on the shape of the damage function. We also examine the benefits of cooperation in the context of uncertainty: We highlight the existence of an additional benefit of cooperation, namely risk reduction.

Keywords

Cooperation Uncertainty Climate change Integrated assessment model 

JEL Classification

C71 C73 D9 D62 F42 Q2 

Notes

Acknowledgements

The authors are grateful to Johan Eyckmans, Alain Haurie and Henry Tulkens for fruitful comments on preliminary versions of the paper. The CWS model has been developed under the CLIMNEG research project supported by the Belgian Science Policy (contract CP/05A).

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Copyright information

© Springer Science+Business Media B.V. 2011

Authors and Affiliations

  • Thierry Bréchet
    • 1
    Email author
  • Julien Thénié
    • 1
    • 2
  • Thibaut Zeimes
    • 1
  • Stéphane Zuber
    • 1
  1. 1.CORE, Chair Lhoist Berghmans in Environmental Economics and ManagementUniversité catholique de LouvainLouvain-la-NeuveBelgium
  2. 2.ORDECSYS CompanyChêne-BougeriesSwitzerland

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