Playing a Better Global Warming Game: Does it Help to be Green?

Alfred Endres, Michael Finus
Schweizerische Zeitschrift für Volkswirtschaft und Statistik / Revue Suisse d'Economie politique et de Statistique / Swiss Journal of Economics and Statistics, Volume 134, Issue 1, 1998, Pages 21-40
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Abstract

It is commonly believed that an increase in environmental awareness is conducive to the protection of the global commons. Moreover, it has been proposed that governments should "give a good example" by unilaterally reducing emissions. In a simple analytical framework it is shown that these relations are less straightforward than intuitively expected. On the contrary: "Good intentions" might lead to lower abatement targets within an international environmental agreement and to lower stability due to strategic behavior of governments.