Game Practice and the Environment

Game Practice and the Environment

The Fondazione Eni Enrico Mattei series on Economics, the Environment and Sustainable Development

Edited by Carlo Carraro and Vito Fragnelli

This book summarises the latest achievements of researchers involved in the application of game theory to the analysis of environmental matters. It provides an overview of different methods and applications, and gives the reader new insights on the solutions to complex environmental problems. The authors investigate various game theoretic approaches, including cooperative and non-cooperative game theory, and analyse both dynamic and static games. They illustrate the application of these approaches to global and local environmental problems, and present novel but effective tools to support environmental policy making. In particular, they focus on three important issues; climate negotiations and policy, the sharing of environmental costs, and environmental management and pollution control.


Carlo Carraro and Vito Fragnelli

Subjects: economics and finance, environmental economics, game theory, environment, environmental economics


Carlo Carraro and Vito Fragnelli Game theory is one of the most useful mathematical tools that economists and mathematicians have been using to deal with complex economic and policy problems. At the same time, environmental issues are at the heart of many domestic and international policy processes, where interactions among different stakeholders play a crucial role. It is therefore natural to adopt game theory as one of the analytical instruments that can enhance our understanding of the interrelations between the economy and the environment, and that can also provide practical suggestions for policy interventions. The existing literature on game theory and the environment is vast (Cf. Carraro, 2002, 2003; Finus, 2001; Hanley and Folmer, 1998; and many others). Therefore, when designing this book, and the conference where the chapters of this book were presented and discussed, the main questions were: What are the original features of the book? How does it differ from the many books already published on the application of game theory to environmental matters? Of course, each single chapter contains some innovative results that will be highlighted below. However, the design of the book also contains some specific features that are worth mentioning. First, the book is the outcome of interdisciplinary work involving economists and mathematicians. Some of the chapters have been written by mathematicians who possess sophisticated mathematical tools and look for an interesting environmental economic problem to apply them to. Other chapters have been written by economists who seek adequate tools to...