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``Emission'' game: the statement of the problem

The problem is how to distribute the global reduction of COtex2html_wrap_inline817 emission to individual reductions. A solution can be found if we apply a game theoretic concept to this problem: different countries are actors in a game with non-antagonistic interests (either in Germeier's sense [1] or in a more traditional sense [2]). It seems to us that the ``game'' approach would be very natural in application to the problem.

Let us consider the simplest example: there are two independent actors, A and B (two countries or regions), each of them releases tex2html_wrap_inline831 and tex2html_wrap_inline833 amounts of COtex2html_wrap_inline817 per year (in carbon units) into the atmosphere. The total emission is equal to tex2html_wrap_inline837. As a rule, these emissions are connected to the energy sector of their economies. We used the term ``independent actors'' keeping in mind that each actor establishes an own level of emission taking into account only an own interest. There are no hierarchical connections between them, but other informal connections may be, in particular, the tendency to avoid hardly evaluable consequences of climate change. Since the climate change is determined, in turn, by the concentration of COtex2html_wrap_inline817 in the atmosphere, then (if we suppose implicitly that a new climatic equilibrium is stabilised very quickly) the climate change will depend on the total emissions q. The best strategy is to save status quo, or, at least, to be as close as possible to this state.

Note that another game theory approach is possible [3].The approach is based on the fact that the countries differ in their vulnerability to global warming (GW) and that two coalitions (suffering and not suffering countries are included) will possibly be formed. The problem is modelled as an economic infinite-horizon differential game. The player negotiate an agreement among Pareto’s efficient programs.

Returning to our problem we understand that in order to realise this strategy we must reduce the total emissions down to zero, but it is unrealistic. It is supposed that the emissions were reduced from tex2html_wrap_inline831 to tex2html_wrap_inline845 and tex2html_wrap_inline833 to tex2html_wrap_inline849 (tex2html_wrap_inline851; tex2html_wrap_inline853), the total emissions were reduced from q to e, where tex2html_wrap_inline859. There is a common ``altruistic'' interest: tex2html_wrap_inline861. This aim is very implicit and badly perceived by a concrete actor. He perceives only that it would be better to avoid a global disaster and for this it is necessary to reduce the total emission. For this reason we call such a strategy an ``altruistic'' one. On the other hand, the reduction of emission requires certain additional expenditures. It is natural to suppose that these expenditures are described by the functions tex2html_wrap_inline863 and tex2html_wrap_inline865 which are monotonously decreasing functions of their arguments. Each actor will tend to minimise his own losses resulting from the reduction of his own emissions, i.e., he has an ``egoistic'' interest: tex2html_wrap_inline867, tex2html_wrap_inline869. And finally, we get:
 eqnarray18
Thus, each actor is in a situation when he has to choose the value of reduction in such a way that would satisfy the both criteria. For this, some problem of multicriteria optimisation must be solved, and, in turn, we need an additional hypothesis making the utility functions of the actors commensurable. We shall weigh ``egoistic'' and ``altruistic'' criteria for each actor introducing coefficients tex2html_wrap_inline871 and tex2html_wrap_inline873, so-called ``coefficients of egoism''. This coefficient is very large, if the actor uses a very egoistic strategy, and vice versa, if the actor is a ``super-altruist'' then the corresponding coefficient is very small. Using these coefficients we can fold the criteria (1) into one criterion for each actor:
 equation23
In other words, each actor considers the maximal from two values, tex2html_wrap_inline875 and e or tex2html_wrap_inline879 and e, as an evaluation of his state. The aim of the actor A is the choice of such an emission tex2html_wrap_inline845 that tex2html_wrap_inline885. However, the value of tex2html_wrap_inline887 depends not only on tex2html_wrap_inline845 but also on tex2html_wrap_inline849, i.e. on the choice of the second actor. The analogous situation takes place also for the second actor. This is a typical conflict situation as far as the actors tend to different aims:
 eqnarray26
How to resolve this?


next up previous
Next: Equilibrium is a principle Up: ``Emission game'': some applications Previous: ``Emission game'': some applications

Werner von Bloh (Data & Computation)
Thu Jul 13 15:46:47 MEST 2000