Dynamic Games of International Pollution Control: A Selective Review

A differential game is the natural framework of analysis for many problems in environmental economics. This chapter focuses on the game of international pollution control, and more specifically on the game of climate change with one global stock of pollutants. The chapter has two main themes. First, the different non-cooperative Nash equilibria (open-loop, feedback, linear, non-linear) are derived. In order to assess efficiency, the steady…

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