Game Theory in the Low-Carbon Economy: From Individual Rationality to Collective Rationality

Qiya Qiao

2025

Abstract

This study uses game theory to solve conflicts between personal interests and group goals in low-carbon economies. As climate change accelerates, aligning individual incentives with collective environmental goals becomes critical. Moving to a low-carbon system needs teamwork from governments, companies, and people. However, when everyone acts for their own benefit, it can hurt shared goals like cutting carbon emissions. This study examines how decisions made by different groups (like setting carbon prices, using green technology, or sharing resources) affect results. By treating these situations as “games” where players do not cooperate, assuming complete information and rational utility maximization, this paper finds ways to make self-focused choices to support environmental targets. This study research shows that policy instruments-like giving money for clean energy or charging fines for high pollution-can connect personal profits to community benefits. This paper also finds that clear information and long-term teamwork help build trust between players. The results advise governments to create rules that encourage cooperation and reduce risks for businesses and individuals. This framework demonstrates how game-theoretic incentives can systematically bridge the gap between micro-level rationality and macro-level sustainability.

Paper Citation

in Harvard Style

Qiao Q. (2025). Game Theory in the Low-Carbon Economy: From Individual Rationality to Collective Rationality. In Proceedings of the 2nd International Conference on Innovations in Applied Mathematics, Physics, and Astronomy - Volume 1: IAMPA; ISBN 978-989-758-774-0, SciTePress, pages 407-412. DOI: 10.5220/0013826800004708

in Bibtex Style

@conference{iampa25,
author={Qiya Qiao},
title={Game Theory in the Low-Carbon Economy: From Individual Rationality to Collective Rationality},
booktitle={Proceedings of the 2nd International Conference on Innovations in Applied Mathematics, Physics, and Astronomy - Volume 1: IAMPA},
year={2025},
pages={407-412},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013826800004708},
isbn={978-989-758-774-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Innovations in Applied Mathematics, Physics, and Astronomy - Volume 1: IAMPA
TI - Game Theory in the Low-Carbon Economy: From Individual Rationality to Collective Rationality
SN - 978-989-758-774-0
AU - Qiao Q.
PY - 2025
SP - 407
EP - 412
DO - 10.5220/0013826800004708
PB - SciTePress