The Game Analysis Of International Cooperation In Low-Carbon Economy And The Construction Of Cooperation Mechanisms

With the climate problemmore and more severe, the low-carbon economy has become a focus in international politics, economy, and Foreign Affairs. Considering externalities of the low-carbon economy, international cooperation has become necessary. But the debate about emission-sharing obstructs the international cooperation. Developed countries insist that developing countries also should limit and reduce their emissions. The developing countries insist that developed countries should be primarily responsible for climate issues. Based on the principle of fairness, they should take the lead in emission reduction, and provide developing countries with financial and technical supports. Reduction will bring about adjustment of the existing economic mode, which will spend greatly and constrain economic growth. The debate on reduction is essentially the debate of economic development space. Considering emission as the right to subsistence and development, the debate on emission-sharing has evolved into dispute between fairness and efficiency.Considering both fairness and efficiency, this paper constructs the allocation model about carbon emission with game theory ---"A property, Two distributions"."A property" refers to distribute global carbon emissions among countries, and define national emissions limits, making this limits as a can of "property." This is based on the Coase Theorem. Clear property rights can effectively solve the problem of inadequate supply of public goods to achieve the optimal allocation of resources. "Two distributions" is to allocate the carbon emissions twice to achieve the balance between fairness and efficiency. In consideration of different stages in economic development among nations, the first distribution will launch on fairness to meet the priority of economic development. The second allocation will depend on the market in order to achieve the optimal allocation of global resources, minimizing the cost."A property, two distributions" not only satisfies the equality on the right to subsistence and development, but also effectively improves the benefits of low carbon economy and reduce its costs. However, there has high transaction costs and lacks international monitoring mechanisms in the international community. So we should construct international cooperation mechanisms to achieve international cooperation. Based on this, we construct the cost-sharing mechanism, selective incentives mechanism, carbon trading mechanism and participation mechanism for environmental non-governmental organizations. Cost-sharing mechanism follows "Who emits, Who bears" principle on fairness. Because the current climate problem is caused by the industrialization of the developed countries for many years, they should burden the major cost. As developing countries emit more and more greenhouse gas, they also should bear the corresponding responsibility for emissions reduction. Analyzing interest demands of different nations, selective incentive mechanism designs measures to inspire and constraint the individual behavior to conquer "free ride" and the tendency of individual opportunism. It will promote cooperation and keep cooperation stable. This article introduces three measures:Issue Linkage, Interest Compensation Mechanism, Social Incentive Mechanism.The second distribution in "Two Distributions" provides a theoretical basis for constructing carbon market. After analyzing the existing carbon market system, this paper points out that the dispersion of existing carbon markets impedes the global allotment of resources. Differences in reduction cost make the market pattern unchanged in the short term. At this stage, we should pay more attention to consummating the basic management system of the carbon market, to lay the foundation for global integration.Environmental non-governmental organizations possess abundant professional knowledge and global resources. They play unique role in international issues. On the one hand, they bring new ideas for international cooperation mechanisms; on the other hand, they play a supervisory role. In the low-carbon economy, sovereign countries are committed to maximize individual interests, while they are committed to maximize the common interests of mankind, which will propel international cooperation. Based on this, in international cooperation of the low-carbon economy, we should actively provide opportunities for the environmental non-governmental organizations to participate in international cooperation.