A Steady-State Game of a Net-Zero Emission Climate Regime

In this paper we propose a very simple steady-state game model that represents schematically interactions between coalitions of countries in achieving a necessary net-zero emission of GHGs in order to stabilize climate over the long term. We start from a situation where m coalitions exist and behave as m players in a game of sharing a global emission budget that can only be maintained by negative emission activities. We compare a fully “cooperative” solution with a Nash equilibrium solution implemented through an international emission trading scheme. We characterize the fully cooperative and Nash equilibrium solutions for this game in a deterministic context.