Socio-Economic Planning Sciences xxx (xxxx) xxx
Please cite this article as: David Carfí, Socio-Economic Planning Sciences, https://doi.org/10.1016/j.seps.2020.100807
Available online 6 February 2020
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Socio-Economic Planning Sciences
journal homepage: www.elsevier.com/locate/seps
Invited paper
Coopetitive games for environmental sustainability: Climate change and
decision global policies
David Carfí
a,b,∗
, Alessia Donato
b
, Maria Incoronata Fredella
c
, Massimo Squillante
d
a
Department of Mathematics, University of California Riverside, 900 University Ave, Riverside, CA 92521, USA
b
Department of Economics, University of Messina, 75 Via dei Verdi, 98122 Messina, Italy
c
European Multidisciplinary Seafloor and water-column Observatory European Research Consortium (EMSO ERIC), Italy
d
Department DEMM, University of Sannio, Piazza Guerrazzi, 82100 Benevento, Italy
ARTICLE INFO
Keywords:
Environmental sustainability
Climate change
Coopetitive games
Green-growth indicator
Green technologies
Paris agreement COP21
ABSTRACT
In this work, we propose and analyze a coopetitive model for the Climate Change environmental sustainability:
a global duopoly type game structure, involving a generic type of green technological good. Our model
allows to select certain strategy profile solutions within a continuous horizon of possible global scenarios,
in the context of the Paris agreement COP21 and after Trump’s decision to abandon the agreement itself.
More specifically, we construct a parametric coopetitive game with two great actors, US and the group of
countries which still agree to COP21. The two actors of our duopoly game compete on the global market
by producing and selling green technological goods (for example: electric cars, electric airplanes, hydrogen
cars, solar panels, low impact batteries for smart houses, electric cars or self phones, and so on). Our multi-
dimensional coopetitive model suggests possible cooperative strategies in order to improve the efficiency and
strength of the actions enforced by the countries to mitigate the Climate Change catastrophic risk at the level
of its causes and effects.
1. Introduction
In 2018 Romer and Nordhaus received the Nobel Prize for work on
Climate change and growth because they ‘significantly broadened the
scope of economic analysis by constructing quantitative models that
explain how the market economy interacts with nature and knowledge’.
Against climate change and environmental issues, the green econ-
omy, that is defined as an economy with low carbon emissions, efficient
use of resources and social inclusivity (according to the United Nations
Environment Program), represents a key tool. A survey of green econ-
omy and related questions is offered in [1] and [2], whereas Georgeson
et al. review the concept of global green economy [3]. In [4], we find an
exam of the effects determined by technology policies. Anbumozhi et al.
offer an analysis of the concept of low-carbon green growth and state-
of-the-art policies in emerging economies in order to attain regional
cooperation for green growth [5]. Green economy for sustainable de-
velopment at a global level is emphasized by Carfì and Schilirò [6] and
by Vargas et al. [7]. Maler adopts a game-theory model based on the
theory of cooperative games for analyze international environmental
agreements and environmental problems [8]. Barret, instead, discusses
global environmental problems applying concepts of game theory to
explore the properties of international environmental agreements [9].
∗
Corresponding author at: Department of Mathematics, University of California Riverside, 900 University Ave, Riverside, CA 92521, USA.
E-mail addresses: davidcarfi@gmail.com, dcarfi@unime.it (D. Carfí).
For what concerns the Paris agreement (see [10]), Kompas et al.
apply a large-scale and intertemporal computational general equilib-
rium (CGE) model to account for the various effects of global warming
(e.g., loss in agricultural productivity, sea level rise, and health ef-
fects) on Gross Domestic Product (GDP) growth and levels for 139
countries over the long-term. These authors estimate the economic
gains from complying with the Paris agreement for 139 countries,
concluding that such gains are substantial [11]. We follow this line of
analysis and thought for construction of our model and the choice of
possible Pareto solutions. However, our paper creates a precise game-
theory dynamic path, by applying the notion of ‘coopetition’, which
generates a parametric curve of non-cooperative games with a tuning
participation level determined by the carbon emissions of each country.
The idea of ‘coopetition’ was devised by Brandenburger and Nalebuff
that argued that game theory can be useful for analyzing coopetitive
situations [12,13]. In this regard, Carfì and Okura discussed the use
of game-theory models in coopetition studies [14] and Carfì applied
coopetition to several economic issues [15–18].
We construct a game theory coopetitive model with two actors,
USA and the group of countries which still agree to COP21, following
the initial idea proposed in [19]. The two actors of our duopoly game
https://doi.org/10.1016/j.seps.2020.100807
Received 27 October 2019; Received in revised form 23 January 2020; Accepted 4 February 2020