Equilibrium Analysis of MPC-based Climate Change Policy in Dynamic Games between Developed and Developing Regions

This paper analyzes an open-loop Nash equilibrium of climate change policies and long-term mitigation pathways based on Model Predictive Control (MPC) in noncooperative dynamic games between developed and developing regions. After introducing a globally-used mathematical framework for a well-known integrated assessment model (IAM), the Regional Integrated Climate and Economy (RICE) model, with economic evaluations in multi-regional heterogeneity, this paper presents a dynamic noncooperative game between developed and developing regions based on possible international agreements. In particular, through numerical analysis, we show that an MPC-based iterative decision process, selected from the permissible control range to support a prescribed rising surface temperature since the Industrial Revolution, is effective.