Strategic game model for climate change negotiations based on utility theory

WANG Can; JIN Zhugang; CAI Wenjia

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Journal of Tsinghua University(Science and Technology) ›› 2015, Vol. 55 ›› Issue (9) : 1017-1022.

ENVIRONMENTAL SCIENCE AND ENGINEERING

Strategic game model for climate change negotiations based on utility theory

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Abstract

A game theory model incorporating utility theory was used to analyze climate change strategies for different countries. The model includes the positive, negative and spillover effects of climate change related investments, temperature change uncertainties and their effects on GDP (gross domestic product) growth. The strategies are dynamic to test for the existence of the first-mover disadvantage. The first-mover disadvantage hypothesis is also confirmed by a typical real case. The strategic model indicates that each country should wait and urge others to make promises in advance, as has been seen in real negotiations.

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climate change negotiations / utility theory / game theory / strategic model

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WANG Can, JIN Zhugang, CAI Wenjia. Strategic game model for climate change negotiations based on utility theory[J]. Journal of Tsinghua University(Science and Technology). 2015, 55(9): 1017-1022

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