Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2014-09-19
Number: 14-126/III
Author-Name: Masako Ikefuji
Author-Workplace-Name: University of Southern Denmark, Esbjerg, Denmark
Author-Name: Jan Magnus
Author-Workplace-Name: VU University Amsterdam, Netherlands
Author-Name: Hiroaki Sakamoto
Author-Workplace-Name: Waseda University, Japan
Title: Adaptation for Mitigation
Abstract: This paper develops a dynamic model consisting of two regions (North and South), in which the accumulation of human capital is negatively influenced by the global stock of pollution. By characterizing the equilibrium strategy of each region, we show that the regions' best responses can be strategic complements through a dynamic complementarity effect. The model is used to analyze the impact of adaptation assistance from North to South. It is shown that North's unilateral assistance to South (thus enhancing South's adaptation capacity) can facilitate pollution mitigation in both regions, especially when the assistance is targeted at human capital protection.
Classification-JEL: D91, Q54, Q58
Keywords: Climate change, mitigation, adaptation, human capital
File-Url: https://papers.tinbergen.nl/14126.pdf
File-Format: application/pdf
File-Size: 280437 bytes
Handle: RePEc:tin:wpaper:20140126