Game Theory and the Environment

Game theory has emerged as a powerful new tool in environmental economics, especially in the study of transboundary pollution problems such as global warming and acid rain. This is the first book specifically concerned with this expanding field and addresses key issues in the application of game theory to environmental economics.

The book features an impressive list of leading authorities who begin by providing a concise introduction and overview of game theory concepts. They then present an examination of methodological issues, and finally apply game theory to a variety of environmental management problems. Included in the analysis are the following issues:

• cooperation versus selfish behaviour and the formation and stability of coalitions
• asymmetric information, commitment and fairness, and irreversibility and uncertainty
• international environmental externalities and international pollution control agreements
• cooperation versus free riding in international affairs
• the reduction of greenhouse gas emissions, regulation of nuclear power and control of acid rain
• best choice policy instruments.

This book will be highly relevant for the growing number of undergraduate and postgraduate courses in environmental economics, environmental management and public policy. It will also be of interest both to academics researching in these areas and to practitioners in government and international agencies.