Limate Change Policy and Economic Competitiveness
This essay is for one of my economics degree module that is called Games in business and Politics, the main topic is Game Theory. I wasnt sure which paper subject to choose so I chose Business.
Climate change is one of the major issues that governments of developed, emerging and less developed countries face. The potential damage and loss of life that rising global temperatures could cause, mean that most developed countries have developed policies to reduce the quantity of greenhouse gases being released into the atmosphere. However, when developing their policies governments must consider the potential costs they will impose on their economies, which may make them less competitive internationally.
The UK government is currently considering what policies it should implement. It has commissioned you to examine a few of the most appropriate policies to tackle global warming, but from the perspective of overall outcomes. This means that they wish you to use your knowledge and skills in the appropriate areas of game theory to provide them with details of how successful these policies will be when other countriesi?? governmentsi?? reactions are taken into account.
Students should display an ability to:
i?? Depict and analyse real life scenarios through games.
i?? Explain why cooperative outcomes yielding optimal outcomes frequently are not chosen.
i?? Evaluation of the difficulties that arise in business and political scenarios where the information held by groups differs.
i?? Recognise the importance of long term and reputational consequences of strategies which target short term gains.
Your report should provide an introduction to the theory you use to allow a non-specialist to understand. This can be drawn from academic books and journals. Information on potential climate change policies should be drawn from reputable sources such as the academic journals, the quality press or websites such as those of the BBC. All sources of information should be cited within the text and included in a full reference list at the end of your report.
Your report is not intended to be a technical discussion of the most appropriate technologies for dealing with climate change. You also do not need to include in-depth descriptions of the dangers of climate change and its causes. You need to look at the implementation of different policies and how successful they are likely to be given the reactions of others. In some cases different types of policy may influence these outcomes, why this would be the case should be explained, but the emphasis should be on the overall likelihood of success of a policy. As such you should not discuss lots of individual potential policies but concentrate on one or two. Payoffs for the game(s) you develop as part of your report do not need to be based on real life studies as this data is likely to be hard to come by. The relative sizes of payoffs is what is more important for your work, although where figures are initially derived from other studies this will be rewarded.