The Czech Economic Review is published by Charles University in Prague. The journal was founded in 2007 as a descendant to a traditional Czech-written outlet, Acta Universitatis Carolinae Oeconomica (AUCO). Three issues are published per volume. All articles and communications are available online free of charge. Printed copies can also be ordered.
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CZECH ECONOMIC REVIEW, Vol 2015 No 1 (2016), 135–154
Differential Game Approach for International Environmental Agreements with Social Externalities
Lina Mallozzi, Stefano Patri, Armando Sacco
published online: 19. 09. 2016
abstract
In this work we study an N-player differential game, in which positive social externalities affect the payoffs of the players when they make an agreement. We divide the N players in two homogeneous groups, N1 developed countries and N2 developing countries. For the latter, we consider a damage-cost function that evolves in time. We imagine the externalities as the possibility that bilateral or multilateral agreements of various nature are by-products of an International Environmental Agreement (IEA). After the determination of emissions solutions, we use the externalities to investigate whether it is possible to have a self-enforcing agreement on pollution emissions in the short run.
keywords: differential game; self-enforcing agreement; social externality; asymmetric players
157 x 230 mm
periodicity: 3 x per year
ISSN: 1802-4696
E-ISSN: 1805-9406