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Climate game analyses for CO2 emission trading among various world organizations

Author

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  • Wu, Pei-Ing
  • Chen, Chai Tzu
  • Cheng, Pei-Ching
  • Liou, Je-Liang

Abstract

This paper simulates the saving in terms of the total abatement cost of CO2 emission reductions for different trading games reflecting the potential cooperation among organizations including the European Union (EU), the Asia-Pacific Economic Cooperation (APEC) countries, the Union of South American Nations (USAN), and the Indian Ocean Rim Association for Regional Cooperation (IOR-ARC). A game approach is conducted to determine if the cooperation will come into existence among the organizations stated above. A similar idea is applied to the four largest emission countries, China, the United States, Russia, and India, as four individual players in the trading game.

Suggested Citation

  • Wu, Pei-Ing & Chen, Chai Tzu & Cheng, Pei-Ching & Liou, Je-Liang, 2014. "Climate game analyses for CO2 emission trading among various world organizations," Economic Modelling, Elsevier, vol. 36(C), pages 441-446.
  • Handle: RePEc:eee:ecmode:v:36:y:2014:i:c:p:441-446
    DOI: 10.1016/j.econmod.2013.08.025
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    Cited by:

    1. He, Weijun & Yang, Yi & Wang, Zhaohua & Zhu, Joe, 2018. "Estimation and allocation of cost savings from collaborative CO2 abatement in China," Energy Economics, Elsevier, vol. 72(C), pages 62-74.
    2. Jiali Zheng & Han Qiao & Shouyang Wang, 2017. "The Effect of Carbon Tax in Aviation Industry on the Multilateral Simulation Game," Sustainability, MDPI, Open Access Journal, vol. 9(7), pages 1-24, July.
    3. Zhang, Xiao-Bing & Zhu, Lei, 2017. "Strategic carbon taxation and energy pricing under the threat of climate tipping events," Economic Modelling, Elsevier, vol. 60(C), pages 352-363.
    4. Adhitya Wardhono & Panji Tirta Nirwana Putra & M. Abd. Nasir, 2016. "Causal study of macroeconomic indicators on carbon dioxide emission in ASEAN 5," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2016(2), pages 15-31.
    5. Cosimo Magazzino, 2017. "The relationship among economic growth, CO2 emissions, and energy use in the APEC countries: a panel VAR approach," Environment Systems and Decisions, Springer, vol. 37(3), pages 353-366, September.

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    More about this item

    Keywords

    Nash equilibrium; Marginal abatement cost; Directional distance function; Shadow price model; Emission trading game;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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