Bargaining Over A Climate Deal: Is It Worse To Wait And See?
Assuming that a North-South transfer is the key to climate cooperation, the authors ask when and how much the North should offer to the South in return for a commitment to reduce deforestation and forest degradation. In light of the risk of irreversible damage over time, they examine a negotiation with a deadline. They assess the conditions for an agreement to be immediate or delayed, and discuss situations likely to result in negotiation failure. Despite the risk of irreversible damage over time, they show that cooperation is likely to be delayed and characterize situations where North and South fail to agree within the deadline.