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Although the climate talks are quite young they already have had an eventful history. The first step was the Convention agreed in 1992 in Rio. The second step was the Kyoto Protocol that was signed in 1997 after long negotiations. The Protocol finally entered into force in January 2005 after ratification by Russia. However, the USA - the largest emitter of greenhouse gases - withdrew from the Protocol in 2001.
There are still a lot of open questions and it is quite clear - having the IPCC Assessment Reports in mind - that the Protocol can serve only as a first step. Moreover, the post-Kyoto talks have shown that having an agreement might not be enough.
In order to analyse the negotiation process and the underlying incentives, we use a game theoretic approach accounting for certain (equity-) preferences. We also use macro-economic models. The purpose for using these models is twofold:
