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The Effect of Inequality Aversion on a Climate Coalition Formation: Theory and Experimental Evidence

Lin, Yu-Hsuan (2017): The Effect of Inequality Aversion on a Climate Coalition Formation: Theory and Experimental Evidence. Published in: Economics of International Environmental Agreements: A Critical Approach (January 2017): pp. 61-76.

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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 the inequality-averse attitudes have 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.

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