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SUMMARY:Restoration Responsibility in a Dynamic Game of Deforestation\, Pr
 oduction\, and Pollution Accumulation
DTSTART:20260521T090000Z
DTEND:20260521T101500Z
DTSTAMP:20260607T050200Z
UID:indico-event-15383@indico.math.cnrs.fr
DESCRIPTION:Speakers: Fouad El Ouardighi (ESSEC Business School)\n\nThis p
 aper examines which country should undertake forest restoration when produ
 ction and deforestation jointly degrade environmental absorption capacity.
  We develop a two-country dynamic game in which a forest owner derives rev
 enues from deforestation while a non-owner benefits from production\; both
  generate emissions\, but only deforestation directly reduces carbon sink 
 efficiency. Restoration is costly and subject to inertia. Consistent with 
 international governance frameworks\, the restoring country commits to a p
 redetermined restoration path\, while the non-restorer may either commit o
 r retain strategic flexibility. Under homogeneous strategies\, long-run en
 vironmental outcomes are independent of which country restores. Under hete
 rogeneous strategies\, however\, the allocation of restoration responsibil
 ity becomes crucial: assigning restoration to the producer may aggravate e
 nvironmental degradation and lead to history-dependent\, potentially irrev
 ersible dynamics\, whereas assigning it to the deforester mitigates opport
 unistic behavior and promotes more stable outcomes. A novel finding is tha
 t history-dependency is both control-specific and parameter-dependent: the
  deforester’s deforestation and restoration controls exhibit strong Skib
 a behavior robustly across parametric regimes\, while the producer’s emi
 ssions exhibit weak Skiba behavior when economically dominant but become m
 ore sensitive to initial conditions when the deforester dominates. These r
 esults reflect an asymmetry in transmission channels and suggest that robu
 st environmental protection requires aligning restoration responsibilities
  with forest ownership. (Joint with Giorgio Gnecco -IMT - School for Advan
 ced Studies\, Lucca\, Italy \, Eugene Khmelnitsky-Tel Aviv University\, Ra
 mat Aviv\, Israel\, Marcello Sanguineti-University of Genova\, Genova\, It
 aly\n\nhttps://indico.math.cnrs.fr/event/15383/
LOCATION:Auditorium 5 (Toulouse School of Economics)
URL:https://indico.math.cnrs.fr/event/15383/
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