| Article ID: | iaor2009528 |
| Country: | Netherlands |
| Volume: | 5 |
| Issue: | 1/2 |
| Start Page Number: | 67 |
| End Page Number: | 94 |
| Publication Date: | Feb 2008 |
| Journal: | Computational Management Science |
| Authors: | Loulou Richard, Labriet Maryse |
| Keywords: | meteorology, energy |
In order to study the conditions for a World self-enforcing agreement on climate change, we model cooperative and non-cooperative World climate strategies with an integrated version of the 15-region techno-economic MARKAL model in which abatement costs and climate related damages are both included. We first explain why the use of a technology oriented model may add value to the analysis of global GHG strategies. Based on the empirical finding of linear cumulative climate damages, the computation of Nash equilibrium can be reduced to solving a series of 15 independent linear programs, one per region.