Given two technologies that can be used to combat the disastrous effects of climate change - through abatement and through reverse engineering -, Barrett and Dannenberg looks at how uncertainty about climate change affects which technology countries use and whether countries are able to achieve their emission target. Results for laboratory experiments show that disastrous effects of climate change will be avoided when the target is known. This holds whether or not the intensity of the disaster is known. Unfortunately, when the target is unknown (under both known and unknown disaster intensity), disastrous effects of climate change will not be avoided.
Account A: 10 chips worth €0.10 each
Account B: 10 chips worth €1.00 each
Game is one-shot and there are 3 stages:
There were 5 trial rounds and group members were reshuffled every time.
Copy of the paper can be downloaded at www.pnas.org/content/109/43/17372.short.
Anna is an applied microeconomist interested in the relationship between human behavior and economic decision-making. She works primarily on environmental and natural resource topics using experimental, behavioral, survey and spatial datasets. This blog was created for the sole purpose of archiving and sharing interesting articles and ideas.