Home » The problem of climate change will require global cooperation. Imagine there are three countries in the global economy of the same size. Each country…

The problem of climate change will require global cooperation. Imagine there are three countries in the global economy of the same size. Each country…

The problem of climate change will require global cooperation. Imagine there are three countries in the global economy of the same size. Each country emits 4 gigatons of CO2 each year. Reducing 1 gigaton of emissions will cost each country \$30 billion. However, each gigaton of reduced emission will provide \$60 billion in benefits divided among the 3 countries of the world proportional to population. The 3 countries’ populations are initially equal. The benefits stem from reduced damages due to disasters and temperature changes (these numbers are approximately accurate incidentally).

1. (a) What is the payoff for each player as a function of the strategy profiles?
2. (b) Calculate the welfare maximizing choice of emission levels.
3. (c) Compute the set of rationalizable emissions levels for each player.
4. (d) Suppose one country conquers another country. Now there are two countries, one with 1/3 of global population responsible for 4 gigatons, the other with 2/3 of global population responsible for 8 gigatons. It still costs each country the same amount per gigaton to reduce emissions. Compute the set of rationalizable effort levels.
5. (e) Suppose the world enters an age of enlightenment. The conquering country lets the conquered country go so that we are now back to the world with three equal sized countries. In the spirit of altruism, countries now maximize their own payoffs plus β times the total welfare of the world. How high does β have to be to achieve the welfare maximizing choice of emission levels.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.