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This paper explores the collective action problem as it relates to climate change and develops two models that capture the mitigation–adaptation trade‐off. The first model presents climate change as a disaster that will occur with certainty, and where both mitigation and adaptation reduce the size of the loss associated with the disaster (the so‐called deterministic model). The second model presents...
We use behavioral and experimental economics to study a particular aspect of the economics of climate change: the potential trade-off between countries' investments in mitigation versus adaptation. While mitigation of greenhouse gases can be viewed as a public good, adaptation to climate change is a private good, benefiting only the country or the individual that invests in adaptation. We use a one-shot...
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