Combining Adaptation and Mitigation: A Game Theoretic Approach

This paper deals with an application of dynamic games for the design of efficient climate policies involving both adaptation and mitigation elements. More precisely, this paper extends the integrated assessment model Ada-BaHaMa to a game theoretic framework where several world regions define noncooperatively their energy and climate policies all the while being affected by climate change damages induced by their total greenhouse gas emissions. The paper provides also a numerical illustration for a setting with two players.