Adoption Gaps of Environmental Adaptation Technologies with Public Effects

38 Pages Posted: 16 Jul 2019

See all articles by Angelo Antoci

Angelo Antoci

University of Sassari

Simone Borghesi

University of Siena - Dept. of Political and International Sciences; European University Institute

Giulio Galdi

University of Siena

Sergio Vergalli

University of Brescia - Department of Economics; Fondazione Eni Enrico Mattei (FEEM), Milan

Date Written: July 16, 2019

Abstract

The global nature of the climatic challenge requires a high level of cooperation among agents, especially since most of the related coping strategies produce some kind of externalities toward others. Whether they are positive or negative, the presence of externalities may lead the system towards Pareto-dominated states. In this work, we study under and over-adoption of environmental adaptation technologies which enhance environmental quality for the individual while transferring externalities to other agents. We distinguish adaptation technologies between maladaptation and mitigation ones, depending on the sign of the externalities. In particular, we show that over adoption may occur for maladaptive technologies, whereas under-adoption may occur in case of mitigation. We study a model with two regions at different stages of development, which allows us to draw considerations on well-being consequences of environmental dumping.

Keywords: Adaptation, Negative Externalities, Evolutionary Dynamics, Public Good Game, Environmental Dumping

JEL Classification: C70, D62, O13, O40, Q20

Suggested Citation

Antoci, Angelo and Borghesi, Simone and Galdi, Giulio and Vergalli, Sergio, Adoption Gaps of Environmental Adaptation Technologies with Public Effects (July 16, 2019). FEEM Working Paper No. 14.2019, Available at SSRN: https://ssrn.com/abstract=3420684 or http://dx.doi.org/10.2139/ssrn.3420684

Angelo Antoci

University of Sassari ( email )

Piazza Universita
Sassari, 07100
Italy

Simone Borghesi

University of Siena - Dept. of Political and International Sciences ( email )

via Mattioli, 10
I-53100 Siena
Italy

European University Institute ( email )

Villa Schifanoia
133 via Bocaccio
Firenze (Florence), Tuscany 50014
Italy

HOME PAGE: http://https://me.eui.eu/simone-borghesi

Giulio Galdi

University of Siena ( email )

Via Banchi di Sotto, 55
Siena, 53100
Italy

Sergio Vergalli (Contact Author)

University of Brescia - Department of Economics ( email )

Via San Faustino 74B
Brescia, 25122
Italy

Fondazione Eni Enrico Mattei (FEEM), Milan ( email )

Corso Magenta 63
20123 Milan
Italy

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