Course Description

This PhD minicourse applies dynamic game theory and offers a coherent framework that can be used to analyze environmental problems as well as solutions. We will model countries¡¯ strategic choices of emissions over time, their investments in technology, bargaining and alternative designs of agreements, and free riding and coalition formation. We will also compare policy instruments, such as demand-side and supply-side regulation. Because the problem is dynamic, it is important to think carefully about discounting and time inconsistency. We will end by analyzing the political economics of environmental regulation.