Extending the simulation analysis of the DICE model of Nordhaus (1994) towards a more realistic framework which introduces heterogeneous countries (e.g., industrialized vs developing countries), this paper attempts to evaluate the potential vulnerability of international cooperation to slow global warming. We find that an extended DICE model produces considerable fluctuation in the emission control rates of CO2 against even small changes in the technological and behavioral parameter values of the two types of countries. The most important factor that causes such vulnerability is differences in the discount rates among countries. It is noted that discount rates are likely to vary depending upon the stages of economic development.
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