Title

Information manipulation and Climate Agreements

Document Type

Journal article

Source Publication

American Journal of Agricultural Economics

Publication Date

4-2014

Volume

96

Issue

3

First Page

851

Last Page

861

Publisher

Oxford University Press

Keywords

Asymmetric information, climate change, information transmission, international environmental agreements

Abstract

It appears that news media and some pro-environmental organizations have the tendency to accentuate or even exaggerate the damage caused by climate change. This article provides a rationale for this tendency by using a modified International Environmental Agreement (IEA) model with asymmetric information. We find that the information manipulation has an instrumental value, as it ex post induces more countries to participate in an IEA, which will eventually enhance global welfare. From the ex ante perspective, however, the impact that manipulating information has on the level of participation in an IEA and on welfare is ambiguous.

DOI

10.1093/ajae/aau001

ISBN

00029092

Print ISSN

14678276

Publisher Statement

Copyright © The Author (2014). Published by Oxford University Press on behalf of the Agricultural and Applied Economics Association. All rights reserved.

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Recommended Citation

Hong, F., & Zhao, X. (2014). Information manipulation and Climate Agreements. American Journal of Agricultural Economics, 96(3), 851-861. doi: 10.1093/ajae/aau001