Climate Change Through A Game Theory Lens
Combatting climate change has always been a game among countries. Despite heightened consensus on the need for adequate action to reduce greenhouse gas emissions, countries continue to evaluate the incentives of both sides of the issue: whether to cooperate with others for the betterment of the Earth and security of future generations or to consider their own self-interests and motivations to improve their standings among others.
Climate change, at the heart, is straightforward. As humans have grown in population and dominated the Earth, they have induced a drastic impact on the planet in order to obtain the wealth they enjoy today. There is a social dilemma that exists which challenges collective contributions to reduce greenhouse gas emissions. Since CO2 is known to give nations more wealth, countries must decide whether to cooperate for the best of the world or to stick to the temptation of benefiting themselves over the wellbeing of others.
Game theory offers a lot to whether or not countries decide to engage in climate action. The “players” end up being the individual countries that try to choose options that would help them secure the best outcomes for themselves. They then engage in “games” that embrace the idea of interdependence where the outcomes for the “players” or countries depend on what strategies others act on.
Climate change can be treated as an iterated game where there is a common-pool resource that is available to everyone. If managed correctly, these resources can sustain and provide value to many parties, but when too much is taken too quickly, the resource can easily be depleted. This concept, the “Tragedy of the Commons” showcases how temptation for resources and wealth can allow for the pollution and destruction of resources. Therefore, the “game” must be set up in a way to reward cooperation and stop individual “players” from free riding from other’s contributions. If nations put their faith on one another and choose to cooperate for a sustainable future rather than settle on their best interests, the consequences of climate change can be mitigated!
Can game theory help solve the problem of climate change? | Mathematics | The Guardian