Munich Personal RePEc Archive

An environmentally sustainable global economy. A coopetitive model

Carfì, David and Donato, Alessia and Schilirò, Daniele (2018): An environmentally sustainable global economy. A coopetitive model.

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This paper proposes a model representing a global economy which aims to become environmentally sustainable. The model looks both at the production side and the consumption side of the economy. Regarding the production side, the suggested model considers investment and innovation in climate technologies, whereas on the side of the consumption it takes into account economic and policy instruments to change the patterns of consumption of the households. The model follows a game theory approach and applies a theoretical framework à la Cournot. The results of the paper are the following: the model provides win-win solutions, namely strategic situations in which each country takes advantages by cooperating and competing at the same time within the global economy, and where each country gets a positive return. In fact, the model shows the convenience for each country to cooperate and suggests the implementation of policies in order to satisfy the basic requirements of 2030 Agenda for Sustainable Development, in terms of production, consumption and climate change.

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