A stochastic multigeneration game for global climate change impact assessment

This paper deals with a definition of intergenerational equity in a stochastic game formation. We propose a piecewise deterministic control model where the control is exerted by a succession of generations, each having a random life duration. Each generation has a concentration both the expected reward received during its own life and the expected reward that will accrue to the next generation where it will take control at the end of the present generation's life. An intergenerational equilibrium is defined. The model is then specialized to the case of exponential random life duration and stationary state equations. A complete characterization of the equilibrium solution is proposed through the use of a family of auxiliary infinite horizon control problems. A numerical approximation method is proposed. The model and the equilibrium concepts are then used in the context of an integrated assessment model of global climate change impacts.