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Altruistic preferences in global emission games

Author

Listed:
  • A. Zapata

    (Universidad de Sevilla)

  • A. M. Mármol

    (Universidad de Sevilla)

  • L. Monroy

    (Universidad de Sevilla)

  • M. A. Caraballo

    (Universidad de Sevilla)

Abstract

This paper analyses the impact of altruism on the individual country goverments’ incentives to reduce global polluting emissions. The game theory perspective provides insights into the strategic decision-making processes of the governments regarding the problem of climate change. We propose a model of strategic interactions among countries in which each government is concerned with its own benefit, as well as with the benefits of all the other countries.The model is a vector-valued non-cooperative game that permits the representation of situations in which the preferences of the governments are incomplete and there is imprecision about the degrees of altruism. The focus is on the identification of the potential equilibria that will eventually be reached when the governments show different attitudes towards other countries or groups of countries. As a result, we show that the incorporation of altruism into the model produces equilibria with a positive effect on the reduction of emissions.

Suggested Citation

  • A. Zapata & A. M. Mármol & L. Monroy & M. A. Caraballo, 2024. "Altruistic preferences in global emission games," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 32(3), pages 843-864, September.
  • Handle: RePEc:spr:cejnor:v:32:y:2024:i:3:d:10.1007_s10100-023-00890-0
    DOI: 10.1007/s10100-023-00890-0
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    References listed on IDEAS

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    1. Michael Finus & Alejandro Caparrós (ed.), 2015. "Game Theory and International Environmental Cooperation," Books, Edward Elgar Publishing, number 15345.
    2. Sophie Bade, 2005. "Nash equilibrium in games with incomplete preferences," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 26(2), pages 309-332, August.
    3. van der Pol, Thomas & Weikard, Hans-Peter & van Ierland, Ekko, 2012. "Can altruism stabilise international climate agreements?," Ecological Economics, Elsevier, vol. 81(C), pages 112-120.
    4. Marmol, Amparo M. & Puerto, Justo & Fernandez, Francisco R., 2002. "Sequential incorporation of imprecise information in multiple criteria decision processes," European Journal of Operational Research, Elsevier, vol. 137(1), pages 123-133, February.
    5. L. S. Shapley & Fred D. Rigby, 1959. "Equilibrium points in games with vector payoffs," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 6(1), pages 57-61, March.
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    More about this item

    Keywords

    Non-cooperative emission games; Altruistic preferences; Vector-valued games; Partial information; Equilibria;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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