Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/102014 
Year of Publication: 
2013
Series/Report no.: 
Nota di Lavoro No. 108.2013
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
In a context of laissez-faire, the propositions established in this paper shed light on the evolution of the problem of greenhouse gas (GHG) accumulation in the atmosphere for each type of strategic behaviour resulting from countries’ interconnection on global markets. In a framework of strong economic interdependencies, they show the potential consequences of the free trade arrangements on the environment and question the idea that free trade liberalisation should necessarily lead to an increase in countries’ welfare. This paper provides an exhaustive typology of countries’ strategic behaviours and a strong static comparative analysis with regard to the exogenous parameters of the model. Whereas some assumptions tend to be less relevant from an environmental point of view; others that are very relevant have not yet been considered in the literature. Using lattice theoretic notions, this paper generalizes the existing results of the literature and determines new equilibria not yet exploited. It thus extends the current framework of the traditional public economic theory dealing with public goods.
Subjects: 
Non-Cooperative Game Theory
Climate Change
Global Emission Game
Nash Equilibria
Strategic Substitutes and Complements
JEL: 
C72
H41
Q54
Document Type: 
Working Paper

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