Global Warming (Climate Change)

Global warming is the observed increase in the average temperature of the Earth's near-surface air temperature, which rose by 0.74 °C (1.3 °F) during the last century.

There is scientific evidence that climate change is a serious global threat. The concentration of greenhouse gases (GHGs) in the atmosphere could induce a global average temperature rise of over 2°C as early as 2035. (In the longer term, there would be more than a 50% chance that the temperature rise would exceed 5°C. This rise would be equivalent to the change in average temperatures from the last ice age to today.)

How does IndustryPlayer integrate Global Warming into it's Simulation?

IndustryPlayer has a Climate Change Index which indicates the current temperature anomaly caused by the cumulated greenhouse gas emissions of all active companies.

The Climate Change Index reflects how much of the total capital of all players has been invested into emission-intensive industries in relation to less polluting industries. Every Industry has a climate change coefficient based on it's actual greenhouse gas emission volumes.

Carbon Footprint

A player's cumulated GHG emissions can be referred to as his Carbon Footprint.

Emissions Trading

Each player's contribution to climate change is calculated on the basis of his companies GHG emissions. If a player's overall emissions remain lower than the average emissions of all active players companies, his remaining unused emission allowances are reimbursed. Otherwise, if a player's emissions exceed the average GHG output, he needs to buy additional emission allowances. This very effective, self-regulating mechanism refers to the Emission Trading Schemes currently applied in more and more countries and regions.

Increasing Energy Costs

Considering the strong increase in global energy consumption and with conventional energy resources becoming more and more scarce, energy costs are likely to climb more strongly than most other costs in production. Therefore, the IndustryPlayer Economy simulates a continuous energy cost inflation. Increasing energy costs primarily affect the production costs and the profitability of industries which are relatively strong energy consumers.

CSR based Tax Incentive

Corporate Social Responsibility (CSR) stands for a company's voluntary consideration of all stakeholders interests and of it's overall environmental impact. CSR is closely linked with the principles of sustainable development. In IndustryPlayer, each participant's holding has a CSR Rating, which is determined by it's cumulated greenhouse gas emissions, by it's labour policy and quality control in production. Players who achieve a strong CSR Rating are rewarded with a discount of up to 50% on their income tax payments.

Links/Sources

Stern Review on the economics of climate change

2013-05-22 14:18:27

Players: 5

Companies: 6

Population: 4,275,592

245 Industries/16 Sectors

Climate Change +1.6°C/2.8F

Average CSR Rating: 2.48

Interest Rate: 6%

Tax Rate: 20%