Game Practice and the Environment (The Fondazione Eni Enrico Mattei on Economics and the Environment)

Game theory is one of the most powerful tools that economists can use to deal with complex economic and policy problems. At the same time, environmental issues are at the heart of many domestic and international policy processes, where interactions among different stakeholders play a crucial role. It is therefore natural to adopt game theory as one of the analytical instruments to enhance our understanding of the interrelations between the economy and the environment, and provide practical suggestions for policy interventions. This book summarises the latest achievements of researchers involved in the application of game theory to the analysis of environmental matters. It provides an overview of different methods and applications, and gives the reader new insights on the solutions to complex environmental problems. The authors investigate various game theoretic approaches, including cooperative and non-cooperative game theory, and analyse both dynamic and static games. They illustrate the application of these approaches to global and local environmental problems, and present novel but effective tools to support environmental policy making. In particular, they focus on three important issues; climate negotiations and policy, the sharing of environmental costs, and environmental management and pollution control. This book presents ground-breaking applications of game theory to deal with today's pressing environmental problems. It will become a valuable source of reference for academics and researchers interested in environmental economics and management, game theory and international relations. Contents......Page 5 Contributors......Page 7 Introduction......Page 9 1. Stable international agreements on transfrontier pollution with ratification constraints1......Page 17 2. Can equity enhance efficiency? Some lessons from climate negotiations......Page 45 3. Endogenous strategic issue linkage in international negotiations......Page 73 4. Kyoto and beyond Kyoto climate policy: comparison of open-loop and feedback game outcomes......Page 95 5. Cost sharing in a joint project1......Page 121 6. A model for cooperative intermunicipal waste collection: cost evaluation toward fair cost allocation......Page 133 7. Co-insurance games and environmental pollution risk......Page 153 8. Environmental effects of consumption: an approach using DEA and cost sharing......Page 172 9. Competition and cooperation in natural resources exploitation: an evolutionary game approach......Page 195 10. Greenhouse gases, quota exchange and oligopolistic competition......Page 220 11. A conjectural cooperative equilibrium for strategic form games......Page 232 Index......Page 255

Economists looking for adequate tools to deal with relevant policy issues, and mathematicians with sophisticated mathematical tools looking for interesting environmental economic problems to apply them to, explore how game theory can be used to analyze the interrelations between the economy and the environment and to provide practical suggestions for policy interventions. They were charged with finding practical solutions to environmental problems and to use game theory to identify these concrete solutions, a goal they have not always achieved but which provides a common denominator to their studies. The 11 papers were presented to a conference at an undisclosed location and date. Annotation ©2004 Book News, Inc., Portland, OR

Game theory can be used to deal with complex economic and policy problems. It is therefore natural to adopt game theory as one of the analytical instruments that can enhance our understanding of the interrelations between the economy and the environment and that can also provide practical suggestions for policy interventions "This book presents ground-breaking applications of game theory to deal with today's pressing environmental problems. It will become a valuable source of reference for academics and researchers interested in environmental economics and management, game theory and international relations."--Jacket