Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/39030 
Authors: 
Year of Publication: 
2010
Series/Report no.: 
CESifo Working Paper No. 3003
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
In this paper I examine the design of climate treaties when there exist two kinds of technology, a conventional abatement technology with (linearly) increasing marginal costs and a backstop technology ('air capture') with high but constant marginal costs. I focus on situations in which countries can gain collectively by using both technologies. I show that, under some circumstances, countries will be better off negotiating treaties that are not cost-effective. When countries prefer to negotiate self-enforcing agreements that are cost-effective, the availability of the backstop technology causes cooperation in abatement to increase significantly.
JEL: 
Q54
Document Type: 
Working Paper
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