Trust and CO2 emissions: cooperation on a global scale

Jo, Ara and Carattini, Stefano (2021) Trust and CO2 emissions: cooperation on a global scale. Journal of Economic Behavior and Organization, 190. 922 - 937. ISSN 0167-2681

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Abstract

Although the effect of trust on local cooperation is well-documented, little is known about how trust influences global cooperation. Building on a large body of theoretical and experimental literature, we hypothesize that trust shared in a society may positively affect global cooperative behavior. We provide empirical evidence in the context of climate change that an increase in trust is associated with a larger reduction in CO2 emissions across countries, controlling for country fixed effects and a number of time-varying factors. As a falsification test, we estimate the relationship on an earlier period when there was no concern of man-made climate change (before the 1980s) and find no impact of trust on CO2 emissions during that period.

Item Type:	Article
Official URL:	https://www.sciencedirect.com/journal/journal-of-e...
Additional Information:	© 2021 Elsevier B.V.
Divisions:	Economics Grantham Research Institute
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences H Social Sciences > HB Economic Theory
JEL classification:	Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters N - Economic History > N5 - Agriculture, Natural Resources, Environment, and Extractive Industries > N50 - General, International, or Comparative Z - Other Special Topics > Z1 - Cultural Economics; Economic Sociology; Economic Anthropology > Z10 - General
Date Deposited:	01 Oct 2021 09:51
Last Modified:	16 Nov 2024 05:36
URI:	http://eprints.lse.ac.uk/id/eprint/112163

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