Mathematical Sciences Research Institute

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Economic Games and Mechanisms to Address Climate Change May 04, 2009 - May 06, 2009
Registration Deadline: May 06, 2009 almost 10 years ago
To apply for Funding you must register by: February 04, 2009 about 10 years ago
Parent Program: --
Organizers Rene Carmona (Princeton), Prajit Dutta (Columbia), Chris Jones (University of North Carolina), Roy Radner (NYU), and David Zetland (UC Berkeley).

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Mathematical models of bargaining games can suggest strategies and even equilibria, but they do not necessarily predict actual outcomes. To explore the relationship of theoretical and applied models of bargaining, we will consider feedback approaches that begin with theory, test theory under experimental conditions (where participants negotiate in conditions under incentives present in the theory), and update theory to reflect deviations between predicted and theoretical results. Such approaches are more-likely to produce robust designs for mechanisms to address climate change that can be utilized in the 2009 Kyoto negotiations. Market mechanisms have been touted by many economists as the most efficient process to reduce externalities such as greenhouse gas emissions. The European Union has implemented such a mechanism known as the EU Emissions Trading Scheme (ETS). However, the EU ETS has been criticized in the public press and in congressional hearings for the failure of the implementation of its first phase. Indeed, it has demonstrated the possible shortcomings of cap-and-trade schemes: missing the emissions reduction targets, collapse of allowance prices and significant (some will even say obscene) windfall profits for the energy companies involved. Since most countries are contemplating mandatory cap-and-trade schemes to address CO2 emissions (e.g. Japan, Canada, Australia, New Zealand and the next president of the US has a cap-and-trade scheme on his energy/environmental platform) it is of the utmost importance to understand the economic consequences of the design of a cap-and-trade scheme. The workshop will bring together economists, policy makers, mathematicians, and industrial leaders to address these issues in a rigorous scientific manner. Accommodations: A block of rooms has been reserved at the Rose Garden Inn. Reservations may be made by calling 1-800-992-9005 OR directly on their website. Click on Corporate at the bottom of the screen and when prompted enter code MATH (this code is not case sensitive). By using this code a new calendar will appear and will show MSRI rate on all room types available. The cut-off date for reservations is April 17, 2009. A block of rooms has been reserved at the Hotel Durant. Please mention the workshop name and reference the following code when making reservations via phone, fax or e-mail ONLY: 0905ECONOM. The cut-off date for reservations is April 3, 2009. Room Rate $139/ night.
Keywords and Mathematics Subject Classification (MSC)
Primary Mathematics Subject Classification No Primary AMS MSC
Secondary Mathematics Subject Classification No Secondary AMS MSC
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To apply for funding, you must register by the funding application deadline displayed above.

Students, recent Ph.D.'s, women, and members of underrepresented minorities are particularly encouraged to apply. Funding awards are typically made 6 weeks before the workshop begins. Requests received after the funding deadline are considered only if additional funds become available.

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A block of rooms has been reserved at the Hotel Durant. Reservations may be made by calling 1-800-238-7268. When making reservations, guests must request the MSRI preferred rate. If you are making your reservations on line, please go to this link and enter the promo/corporate code MSRI123. Our preferred rate is $129 per night for a Deluxe Queen/King, based on availability.

Additional lodging options (short term housing page - Short Term Housing

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Schedule, Notes/Handouts & Videos
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May 04, 2009
09:00 AM - 09:40 AM
  Cap-and-Trade Market Models, Tutorial I
Rene Carmona (Princeton University)
09:45 AM - 10:25 AM
  Cap-and-Trade Market Models, Tutorial I I
Rene Carmona (Princeton University)
11:00 AM - 11:40 AM
  Optimal Switching to play Games with the Environment
Michael Ludkovski
02:00 PM - 02:40 PM
  Bushnell"s Talk
James Bushnell
May 05, 2009
09:00 AM - 09:40 AM
  Game Theory and Climate Treaties, Tutorial I
Prajit Dutta (Columbia University)
09:45 AM - 10:25 AM
  Game Theory and Climate Treaties, Tutorial II
Prajit Dutta (Columbia University)
11:00 AM - 12:00 PM
  Uncertainty, Extreme Outcomes, and Climate Change Policy
Robert Pindyck
02:00 PM - 02:30 PM
  An Experimental Investigation of Economic Incentives in Environmental Conservation, Sustainability and Renewable Energy
Svetlana Pevnitskaya
02:30 PM - 03:00 PM
  Games with Dynamic Externalities and Climate Change Experiments
Katerina Sherstyuk
03:00 PM - 03:30 PM
  The Dynamics of Climate Agreements
Bard Harstad
04:00 PM - 05:30 PM
  Climate change dynamics in theory, experiments and reality
David Zetland
May 06, 2009
09:00 AM - 09:55 AM
  Auffhammer"s Talk
Max Auffhammer
10:30 AM - 12:00 PM
  Panel Discussion: Game theory in the math curriculum (motivated by climate change!)
Richard Gilman, David Housman, David Mond, Stephen Schecter