A GAME‐THEORETIC APPROACH TO ACID RAIN ABATEMENT: CONFLICT ANALYSIS OF ENVIRONMENTAL LOAD ALLOCATION¹

Abstract

The detrimental impacts of acid rain have become widely publicized, but effective and equitable methods to mitigate the acid rain problem remain to be found. This paper focuses on conflicts involved in allocation of the total emission loads to be reduced to respective pollution sources of acid rain, and proposes a game-theory approach to the resolution of the conflict. With an example abstracted from a hypothetical case study in the United States of America and Canada, a systematic analysis is performed and policy implications of the results examined to assess the applicability of the proposed model.(KEY TERMS: acid rain; environmental load allocation; conflict analysis; game theory.)

The Nucleolus, the Kernel, and the Bargaining Set: An Update

“…Natural and environmental problems: Lejano and Davos (1995) considers a water reuse project in Southern California and compute the Shapley value and the nucleolus, among other solutions. Okada and Mikami (1992) applies cooperative game theory tools to allocate costs arising in collective problems of pollution reduction.…”

Cooperative games and cost allocation problems

“…Okada and Mikami (1992) applied cooperative game theory tools to allocate costs arisen in collective problems of pollution reduction. They compared the allocations provided by the nucleolus and the Shapley value under five different scenarios where the emission reductions were calculated using real data.…”

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