Cooperation and the Carbon Trading Game : A System Dynamics Approach to the Prisoners Dilemma

Abstract

The danger of people or nations misunderstanding each other's has been of great interest in the study of cooperation (Akerlof, 1997). A very important question on climate negotiations is how errors in perceptions or implementation can affect agreements and create conflict. Noise, in the form of random errors in implementing a choice, is a common problem in real-world climate interactions with consequences on GHGs emissions. The paper shows a system dynamics model that simulates national interactions on climate negotiations with noise from emissions information. It shows the role of information policies in reducing GHGs emissions. It tackles the question of which kinds of data shall be considered a " global public goods " and how to eliminate noise.