ABSTRACT

This chapter investigates the relationship between adaptation technology and the likelihood of sustaining a self-enforcing international environmental agreement over emissions. It aims to facilitate comparison of results to the existing literature. The chapter shows the effect of more efficient adaptation on the range of for which the grand coalition is stable. It presents a numerical example to illustrate that when more efficient adaptation measures increase the size of a stable coalition, this may be accompanied by an increase in global welfare. The chapter focuses on the free-riding incentives of individual countries from existing international environmental agreements (IEA). The incentives to free-ride on an IEA may decrease in the presence of adaptation. The chapter shows that the more efficient is adaptation at reducing marginal damage from emissions, the flatter the best response functions of each country in terms of emissions.