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  4. An Oligopoly Game of CDR Strategy Deployment in a Steady-State Net-Zero Emission Climate Regime
 
research article

An Oligopoly Game of CDR Strategy Deployment in a Steady-State Net-Zero Emission Climate Regime

Babonneau, Frederic
•
Bahn, Olivier
•
Haurie, Alain
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2021
Environmental Modeling & Assessment

In this paper, we propose a simple oligopoly game model to represent the interactions between coalitions of countries in deploying carbon dioxide removal (CDR) strategies in a steady-state net-zero emission climate regime that could take place by the end of the twenty-first century. The emission quotas and CDR activities obtained in the solution of this steady-state model could then be used as a target for end-of-period conditions in a dynamic integrated assessment analysis studying the transition to 2100. More precisely, we analyze a steady-state situation where m coalitions exist and behave as m players in a game of supplying emission rights on an international emission trading system. The quotas supplied by a coalition must correspond to the amount of CO2 captured through CDR activities in the corresponding world region. We use an extension of the computable general equilibrium model GEMINI-E3 to calibrate the payoff functions and compute an equilibrium solution in the noncooperative game.

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Type
research article
DOI
10.1007/s10666-020-09734-6
Web of Science ID

WOS:000581523800001

Author(s)
Babonneau, Frederic
Bahn, Olivier
Haurie, Alain
Vielle, Marc  
Date Issued

2021

Published in
Environmental Modeling & Assessment
Volume

26

Start page

969

End page

984

Subjects

Environmental Sciences

•

Environmental Sciences & Ecology

•

carbon dioxide removal

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climate change

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integrated assessment

•

mitigation

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negative emissions

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steady-state game

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general equilibrium-model

•

carbon capture

•

storage

•

co2

•

energy

Editorial or Peer reviewed

REVIEWED

Written at

EPFL

EPFL units
LEURE  
Available on Infoscience
November 7, 2020
Use this identifier to reference this record
https://infoscience.epfl.ch/handle/20.500.14299/173096
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