Centre International de Recherche

sur l’Environnement et le Développement

Supervisory authorities

CNRS Ecole des Ponts CIRAD EHESS AgroParisTech

Our partners



Home > Research > Methods and tools > Microeconomic analyses

Microeconomic Analyses

by Arancha Sánchez - published on , updated on

Game theory

The aim is to develop theoretical and empirical studies in three directions:

1) international negotiation;
2) global public goods;
3) the role of uncertainty in this negotiation by focusing on:

  • the development of further research of the laboratory on reciprocity in international environmental agreements. The idea is that strategic situations can be studied in a situational framework -e.g. the choice of the behavior rule (Nash or Berge) followed by the choice of the strategy- will be systematically explored.
  • The determination of the conditions under which Berge behavior is preferred to Nash behavior in environmental negotiations. Interactions between uncertainty and international environmental agreements will also be explored, both theoretically and empirically through laboratory experiments.
  • In continuation of Colman et al. (2011) and Nessah and Larbani (2014), we will also work on the properties of Berge equilibrium in order to determine refinements of this solution concept.

Researchers: Tarik Tazdait

Other microeconomic methods

Apart from game theory, the main microeconomic methods used at CIRED are the following:

Models with uncertainty à la Weitzman [1], applied to the choice of environmental policies (taxes, emission trading systems) or of renewable energy policies (feed-in tariffs, premiums, green certificates market…).

Urban economy models applied to many agglomerations, in order to study spatial planning policies, climate change mitigation policies or policies aimed at reducing vulnerability (to heat waves, flooding…).

Geographic economic models à la Krugman [2] with mobility of firms and people, combined to urban economy models in order to study the interactions between these scales.

Simulation or intertemporal optimization models of the electricity sector allowing in particular to study how a carbon price influence substitution among technologies (fossils with or without CO2 capture and storage, nuclear, renewables).

Institutional approaches applied to various public interventions in the electricity sector, biodiversity conservation or water management.

Researchers: Philippe Quirion

[1Prices vs. quantities. Review of Economic Studies, 477-491 (1974).

[2Geography and Trade. MIT Press