Information manipulation and climate agreements
Date of Issue2014
School of Humanities and Social Sciences
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.
American journal of agricultural economics
© 2014 The Author. This paper was published in American Journal of Agricultural Economics and is made available as an electronic reprint (preprint) with permission of Oxford University Press on behalf of the Agricultural and Applied Economics Association. The paper can be found at the following official DOI: [http://dx.doi.org/10.1093/ajae/aau001]. One print or electronic copy may be made for personal use only. Systematic or multiple reproduction, distribution to multiple locations via electronic or other means, duplication of any material in this paper for a fee or for commercial purposes, or modification of the content of the paper is prohibited and is subject to penalties under law.