Cooperative climate action under background risk

Abstract Addressing climate change requires collective action, yet individuals face a collective-risk social dilemma: we must invest in mitigation efforts at a personal cost, with no guarantee that others will contribute, while the benefits are shared globally. Economic theory predicts that the pres...

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Main Authors: Hao Luo, Hanna de Boer, Oliver Musshoff, Daniel Hermann
Format: Article
Language:English
Published: Nature Portfolio 2025-07-01
Series:Scientific Reports
Subjects:
Online Access:https://doi.org/10.1038/s41598-025-12340-9
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author Hao Luo
Hanna de Boer
Oliver Musshoff
Daniel Hermann
author_facet Hao Luo
Hanna de Boer
Oliver Musshoff
Daniel Hermann
author_sort Hao Luo
collection DOAJ
description Abstract Addressing climate change requires collective action, yet individuals face a collective-risk social dilemma: we must invest in mitigation efforts at a personal cost, with no guarantee that others will contribute, while the benefits are shared globally. Economic theory predicts that the presence of background risk, such as geopolitical instability, pandemics, and economic crises, makes individuals more cautious, potentially reducing their contributions to collective climate protection. As these uncertainties grow, concerns arise that exogenous risks may weaken climate cooperation at a time when it is most urgent. To test this prediction, we conducted an economic laboratory experiment with treatments incorporating background risk into a threshold Public Goods Game framed around climate protection, with real carbon offset purchases linked to participants’ decisions in the experiment. Contrary to theoretical expectations, we find that background risk does not systematically lower the likelihood of reaching collective climate goals. This suggests that, under conditions where climate risks are well-communicated and cooperation incentives are strong, concerns about background risk undermining climate action may be less pronounced than anticipated.
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spelling doaj-art-cee65629f018405b909515dc32e5aeaa2025-08-20T03:42:57ZengNature PortfolioScientific Reports2045-23222025-07-0115111010.1038/s41598-025-12340-9Cooperative climate action under background riskHao Luo0Hanna de Boer1Oliver Musshoff2Daniel Hermann3Department of Agricultural Economics and Rural Development, University of GöttingenUniversity of BonnDepartment of Agricultural Economics and Rural Development, University of GöttingenUniversity of BonnAbstract Addressing climate change requires collective action, yet individuals face a collective-risk social dilemma: we must invest in mitigation efforts at a personal cost, with no guarantee that others will contribute, while the benefits are shared globally. Economic theory predicts that the presence of background risk, such as geopolitical instability, pandemics, and economic crises, makes individuals more cautious, potentially reducing their contributions to collective climate protection. As these uncertainties grow, concerns arise that exogenous risks may weaken climate cooperation at a time when it is most urgent. To test this prediction, we conducted an economic laboratory experiment with treatments incorporating background risk into a threshold Public Goods Game framed around climate protection, with real carbon offset purchases linked to participants’ decisions in the experiment. Contrary to theoretical expectations, we find that background risk does not systematically lower the likelihood of reaching collective climate goals. This suggests that, under conditions where climate risks are well-communicated and cooperation incentives are strong, concerns about background risk undermining climate action may be less pronounced than anticipated.https://doi.org/10.1038/s41598-025-12340-9Climate changeBackground riskPublic goods gameLaboratory experiment
spellingShingle Hao Luo
Hanna de Boer
Oliver Musshoff
Daniel Hermann
Cooperative climate action under background risk
Scientific Reports
Climate change
Background risk
Public goods game
Laboratory experiment
title Cooperative climate action under background risk
title_full Cooperative climate action under background risk
title_fullStr Cooperative climate action under background risk
title_full_unstemmed Cooperative climate action under background risk
title_short Cooperative climate action under background risk
title_sort cooperative climate action under background risk
topic Climate change
Background risk
Public goods game
Laboratory experiment
url https://doi.org/10.1038/s41598-025-12340-9
work_keys_str_mv AT haoluo cooperativeclimateactionunderbackgroundrisk
AT hannadeboer cooperativeclimateactionunderbackgroundrisk
AT olivermusshoff cooperativeclimateactionunderbackgroundrisk
AT danielhermann cooperativeclimateactionunderbackgroundrisk