The Effect of Inequality Aversion on a Climate Coalition Formation: Theory and Experimental Evidence
Lin, Y.-H. (2017) “The Effect of Inequality Aversion on a Climate Coalition Formation: Theory and Experimental Evidence.” In Cagatay, S. (Eds) Economics of International Environmental Agreements: A Critical Approach. Routledge: UK. [downloadable]
Abstract
This chapter examines the impact of inequality-averse attitudes on the individual incentives of participating in international environmental agreements by a laboratory experiment. The experimental result shows that inequality-averse attitudes have a significantly positive impact on the incentives of participation. Particularly, when they are non-critical players, egalitarians are likely to give up the free riding benefit by joining a coalition. It helps us to understand the coalition formation in the international conventions.
Abstract
This chapter examines the impact of inequality-averse attitudes on the individual incentives of participating in international environmental agreements by a laboratory experiment. The experimental result shows that inequality-averse attitudes have a significantly positive impact on the incentives of participation. Particularly, when they are non-critical players, egalitarians are likely to give up the free riding benefit by joining a coalition. It helps us to understand the coalition formation in the international conventions.