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Next: The case of n Up: ``Emission game'': some applications Previous: Sufficiency.

Marginal cases: either small or rural country, or super-altruist

Let us return to system (5) and analyse it graphically. We can get the value tex2html_wrap_inline901 as a parametric function of tex2html_wrap_inline849 from the first equation of (5) (figure 1). It is obvious that the set of admissible tex2html_wrap_inline845 will belong to the interval tex2html_wrap_inline1009 where tex2html_wrap_inline1011 is a solution of the equation tex2html_wrap_inline1013 and tex2html_wrap_inline1015. On the other hand, tex2html_wrap_inline1017, or, since tex2html_wrap_inline1019 then tex2html_wrap_inline1021 (tex2html_wrap_inline1023 is a solution of the equation tex2html_wrap_inline1025) and tex2html_wrap_inline1027. Using the analogous considerations for the second equation of (5) (figure 2) we get tex2html_wrap_inline1029 and tex2html_wrap_inline1031. At last, we have
 eqnarray128

  figure133
Figure 1: Graphical solution of (5): tex2html_wrap_inline989 or tex2html_wrap_inline1035.

  figure138
Figure 3: Extreme case when the actor B is a super-altruist (tex2html_wrap_inline1039).

Let us imagine the situation when
 equation143
From the first equation of (5) and the inequality (7) we get the following chain of inequalities:
 eqnarray148
From (8) and the definition of the utility function tex2html_wrap_inline947 follows that
 equation152
i.e., the utility function of the second actor is determined only by the common interest. A graphic illustration of this statement is shown in figure 2. From the altruistic viewpoint the emission must be reduced to zero (tex2html_wrap_inline1043). Simultaneously the utility function of the first actor, tex2html_wrap_inline1045, and his equilibrium strategy, tex2html_wrap_inline1011, depends only on his behaviour: he minimises the own losses knowing that his altruistic partner will always reduce his emission to zero. In other words, the first actor can be considered as an egoist, who does not take into account the interest of another partner.

  figure159
Figure: Extreme case when the actor B is a super-altruist (tex2html_wrap_inline1039).

There are two marginal ways to realise the inequality (7): either the emission tex2html_wrap_inline833 is very small so that the expenditures for its reduction are relatively small, too, or the coefficient of egoism tex2html_wrap_inline873 is very small. In order to realise this we have to suggest that either the actor B is a very small country with low total emission or he is a typical rural country with agricultural economy, or he is a ``super-altruist''.

Such a sort of discrimination among actors is a typical consequence of the non-negativity of emission, so that tex2html_wrap_inline1059 is necessary. But if we neglect such a constraint, then the equations (5) will have a solution with tex2html_wrap_inline1061 also in the case (7). Note that if tex2html_wrap_inline1061 then tex2html_wrap_inline1065 (and, on the contrary, if tex2html_wrap_inline1067 then tex2html_wrap_inline1069). In other words, extending the set of admissible strategies, we provide the existence of an equilibrium strategy in any case. How can we interpret a ``negative emission''? For instance, this may be the formation of some carbon sink on the territory of the country by means of reforestation.


next up previous
Next: The case of n Up: ``Emission game'': some applications Previous: Sufficiency.

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