First global warming game
It’s time to negotiate a new treaty to stop global warming.
• Player 1: Governments of the developed world (US, Europe, Japan, . . . ).
• Player 2: Governments of the developing world (China, India, Brazil, Mexico,
. . . ).
• An investment of $2 trillion is needed to stop global warming.
• It will produce economic beneﬁts of $4 trillion, which will be split equally between
• If the investment is not made, there will be economic losses of $4 trillion, which
will be split equally between the players.
• If both parties agree to contribute, each need only invest $1 trillion.
• If only one party contributes, it must invest $2 trillion.
Payoffs (beneﬁts – investment) in trillions of dollars:
Developed world invest (1, 1) (0, 2)
(2, 0) (−2, −2)