Climate Change and Game Theory

This survey paper examines the problem of achieving global cooperation to reducegreenhouse gas emissions. Contributions to this problem are reviewed fromnon-cooperative game theory, cooperative game theory, and implementation theory.Solutions to games where players have a continuous choice about how muchto pollute, games where players make decisions about treaty participation, andgames where players make decisions about treaty ratification, are examined. Theimplications of linking cooperation on climate change with cooperation on otherissues, such as trade, is examined. Cooperative and non-cooperative approaches tocoalition formation are investigated in order to examine the behaviour of coalitionscooperating on climate change.One way to achieve cooperation is to design a game, known as a mechanism,whose equilibrium corresponds to an optimal outcome. This paper examines somemechanisms that are based on conditional commitments, and could lead to substantialcooperation.