Joint research unit 7235

Mitigation strategies under the threat of solar radiation management

Martin Quaas, Ingmar Schumacher, Fabien Prieur

The option to tackle climate change by means of Solar Radiation Management (SRM) is mostly thought to reduce efforts of mitigating greenhouse gas emissions. Here we hypothesize that (i) a unilateral threat to employ SRM can induce players to commit to strategies with increased mitigation effort compared to what would be observed at the Nash equilibrium in emission strategies only and (ii) there exists a way to share the burden imposed by commitment to avoid SRM that Pareto dominates an alternative that would involve too high current emission levels then followed by future SRM deployment. To study these hypotheses we develop a two-region, two-stage, two-period game where regions choose mitigation and SRM. While SRM targets regional climate preferences, in line with current scientific evidence its deployment leads to uncertain damages on the other region. We first develop the general theory and then study a more specific linear-quadratic application. Finally we calibrate the model to real-world data and find that hypothesis (ii) holds for plausible values.

AGENDA

Thursday 8 June 2023

Doctorants

Sahil Chopra (Université Sorbonne Paris-Nord)

Economics of litigation : Securities class action with third-party funding

Thursday 8 June 2023

Economics of litigation : Securities class action with third-party funding

Sahil Chopra (Université Sorbonne Paris-Nord)

Economics of litigation : Securities class action with third-party funding

Monday 12 June 2023

Law, Institutions and Economics in Nanterre (LIEN)

Arthur Silve (IAST / Univ. Laval)

TBA

Monday 12 June 2023

TBA

Arthur Silve (IAST / Univ. Laval)

TBA

Thursday 15 June 2023

Lunch

Guillaume Pierné

TBA

Thursday 15 June 2023

TBA

Guillaume Pierné

TBA

Monday 19 June 2023

Law, Institutions and Economics in Nanterre (LIEN)

Juan Mora-Sanguinetti (Banco de Espana)

TBA

Monday 19 June 2023

TBA

Juan Mora-Sanguinetti (Banco de Espana)

TBA

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