Adaptation for Mitigation

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.


Issue Date:
Dec 10 2014
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/191000
Total Pages:
45
JEL Codes:
D91; Q54; Q58
Series Statement:
CCSD
102.2014




 Record created 2017-04-01, last modified 2017-08-28

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