Question : The ideal outcome for the climate strategy game is one in which a dominant strategy equilibrium is achieved when both groups of countries choose to abate emissions. Explain how a change in the rules of the game could lead to a potential solution to the social dilemma of climate change.

background info:

o Abate: governments enact policies to reduce carbon emissions, for example, by subsidising clean energies or taxing fossil fuels. . No change: governments fail to enact policies to reduce carbon emissions. Businesses and individuals are free to pursue their own selfinterest. The outcomes and payoffs of this game are shown in Figure 1 below. Figure 1: Outcomes and payoffs for the climate strategy game. Developed Developed Abate No Change Abel: No Change Emissions Developed countries 3 reductions that flee ride on i GUCCI Best g successfully.r developing .n DJ 4: moderates 0|an countries emissions 03 4: .5 change radiations 5 Good Worst Q. n. 2 o a: 3 2b a: Developing ) in 0 g! countries free ID 3 Worst Bad 0 Ell ride on developed No emissions D a S oomlries reductions 6 0 emissions 0 2 reduction; 2 Best Bed