A Stackelberg Dynamic Game Model for Climate Change

Author:

Zou Xiao Yan1

Affiliation:

1. Chongqing Normal University

Abstract

Climate-Change (Global warming) is the central point on the current agenda of the international environmental policy. This paper proposes a model to formulate the global warming policy as dynamic Stackelberg or Leader-Follower Game. In this game, an international agency or international agreement is the leader, who will decide the emission abatement rate of each region; and the followers are several regions who control their consumption of carbon-energy relating to carbon emissions. The challenge of this model is to solve its equilibrium since it is not a liner-quadratic game model.

Publisher

Trans Tech Publications, Ltd.

Subject

General Engineering

Reference13 articles.

1. W.D. Nordhaus and Z.L. Yang: A Regional Dynamic General-Equilibrium Model of Alternative Climate-Change Strategies. The American Economic Review Vol. 86 (1996), pp.741-765.

2. W.D. Nordhaus and J. Boyer: Warming the World: Economic Model of Global Warming. Cambridge, MA: MIT Press (2000).

3. W.D. Nordhaus: The Challenge of Global Warming: Economic Model and Environmental Policy. Yale University, July 24(2007).

4. W.D. Nordhaus: A Question of Balance: Weighing the Options on Global Warming Policies. Yale University Press(2008).

5. J. Eyckmans and M. Finus: Coalition Formation in a Global Warming Game: How the Design of Protocols Affects the Success of Environmental Treaty-Making. KATHOLIEKE University Working Paper Series, December (2003).

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