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…
Publication Keyword: partial cooperation
The Tipping Game
This paper shows that in the presence of a tipping point in a natural system, stable partial cooperation may prevent tipping and if this is not possible, the remaining gains of cooperation are small. This is good news, because the big loss of ecosystem services from tipping can often be avoided. Moreover, the usual grim story that a high level of cooperation is hard to…
The Tipping Game
This paper shows that in the presence of a tipping point in a natural system, stable partial cooperation may prevent tipping and if this is not possible, the remaining gains of cooperation are small. This is good news, because the big loss of ecosystem services from tipping can often be avoided. Moreover, the usual grim story that a high level of cooperation is hard to…
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