Can 'game theory' fight climate change?

First, what is game theory?

Game theory is generally known as a theoretical framework for conceiving social situations among competing players. Specifically, in the context of environmental assessment and real-world situations like climate change. Any situation where two or more players are taken into consideration and include payouts or any quantifiable consequence, game theory can therefore be used to figure out the most likely outcomes.

In fact, game theory can become imperative in helping indetify the optimal policy solutions to current environmental problems (including climate change, pollution and resource degradation).  One could argue that game theory has become a powerful tool when considering environmental economics.

Essentially climate change can be treated as an iterated game where theres is a common-pool resource that is available to everyone. These regenerate and if sustainably managed, can provide valuable resources for many.  However, when too much is taken too quickly, these resources can soon be depleted and eventually collapse.  This collapse, in other words, can be referred as 'tragedy of the commons'. This concept underscores how temptation for resources and wealth can led to a drastic rise in pollution and environmental destruction.

To avoid the 'tragedy of commons', this 'game' can be set up in a way to reward cooperation and prevent individuals from free riding on the contributions of others. Climate change seems to require a 'game' to facilitate cooperation, as a result nations should work together and embrace sustainable solutions rather than consider their own self-interests and motivations to make profit. Thus, helping mitigate the inevitable impact of climate change.

TEDx Talk: https://www.youtube.com/watch?v=4gTFoec7MAw