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A Steady-State Game of a Net-Zero Emission Climate Regime

In: Games in Management Science

Author

Listed:
  • Olivier Bahn

    (HEC Montréal)

  • Alain Haurie

    (ORDECSYS
    University of Geneva
    HEC Montréal)

Abstract

In this paper we propose a very simple steady-state game model that represents schematically interactions between coalitions of countries in achieving a necessary net-zero emission of GHGs in order to stabilize climate over the long term. We start from a situation where m coalitions exist and behave as m players in a game of sharing a global emission budget that can only be maintained by negative emission activities. We compare a fully “cooperative” solution with a Nash equilibrium solution implemented through an international emission trading scheme. We characterize the fully cooperative and Nash equilibrium solutions for this game in a deterministic context.

Suggested Citation

  • Olivier Bahn & Alain Haurie, 2020. "A Steady-State Game of a Net-Zero Emission Climate Regime," International Series in Operations Research & Management Science, in: Pierre-Olivier Pineau & Simon Sigué & Sihem Taboubi (ed.), Games in Management Science, pages 115-130, Springer.
    • Handle: RePEc:spr:isochp:978-3-030-19107-8_7
    DOI: 10.1007/978-3-030-19107-8_7
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    Cited by:

    1. Frédéric Babonneau & Ahmed Badran & Maroua Benlahrech & Alain Haurie & Maxime Schenckery & Marc Vielle, 2021. "Economic assessment of the development of CO2 direct reduction technologies in long-term climate strategies of the Gulf countries," Climatic Change, Springer, vol. 165(3), pages 1-18, April.

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