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International efforts to provide global public goods often face the challenges ofcoordinating national contributions and distributing costs equitably in the face ofuncertainty, inequality, and free-riding incentives. In an experimental setting, wedistribute endowments unequally among a group of people who can reach a fixed targetsum through successive money contributions, knowing that if they fail they will lose alltheir remaining money with 50% probability. We find that inequality reduces theprospects of reaching the target, but that communication increases success dramatically.Successful groups tend to eliminate inequality over the course of the game, with richplayers signalling willingness to redistribute early on. Our results suggest thatcoordinative institutions and early redistribution from richer to poorer nations may widenour window of opportunity to avoid global climate calamity.

Subject(s): Environmental Economics and Policy


Issue Date: 2011-03

Publication Type: Working or Discussion Paper

PURL Identifier:

Total Pages: 29

Record appears in: Australian National University > Centre for Climate Economics & Policy (CCEP) > Working Papers

Autor: Tavoni, Alessandro ; Dannenberg, Astrid ; Kallis, Giorgos ; Loschel, Andreas


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