Groupe d’études et de recherche en analyse des décisions

Differential game approach for international environmental agreements with social externalities

Armando Sacco Università degli Studi di Roma 'La Sapienza', Italie

In this work we study an N-player differential game, in which positive social externalities affects the pay-offs of the players when they make an agreement. We divide the players in two homogeneous groups, developed countries and developing countries. 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.

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