Study On The Solution Of Northeast Asia Environmental Pollution Applying A Game Theoretic Analysis

Environmental pollution is one of the most urgent problems that humankind is facing nowadays. Such problem was already predicted from the beginning of mankind but, following the Industrial Revolution, the rapid expansion of human activities has worsened the situation. Today, environmental problems can no longer be ignored and need to be addressed.Northeast Asia is no exception to this situation. As a result of a drastic reform and socialist market economy in the early 1980s, China has improved its standard of living and boosted its national power, but at the same time, its rapid economic growth has caused adverse matters on environmental issues that are coming to the fore front. The Chinese government has started to develop environmental awareness as environmental diplomacy among nations has rapidly become a major diplomatic issue to the international society and as a result of the condemnation of neighboring countries that have suffered environmental damages from the growing pollution of China. For this reason, it has become an important project to forge an environmental cooperative system sharing information among nations to assess and address environmental problem.From now on, the nation suffering one-sidely damages on international environmental project has solved the problem by subsidizing to nation having a source of pollution. But lately, the affected countries are solving with the trans-border environmental problem in conjunction with another issue by conducting negotiations. In 1994, Mexico couldn't help putting up with suffering unrequitedly from water pollution of America on issue of the Colorado which runs across America and Mexico because of unfavorable geographical feature located in the lower reaches of the river. However, Mexico successfully negotiated a solution to its pollution problems related to the Colorado and the Lower Riogrande by using the advantage of being located in the upper reaches of the Lower Riogrande. It will be possible that affected nations get out of the situation having to endure unrequited damages and be advantageous to both countries in the event of negotiating by connecting issue of negotiation and another problem like this. In addition, there is, always the possibility that an agreed-upon cooperation is implemented faithfully thanks to a mutually benefiting agreement and the stability brought by the negotiation process of multiple collaborative agendas.Accordingly, this study considers how to connect environmental issues of Northeast Asia with an entrance into Chinese environmental industry market. This is selected considering the fact that support for China would reduce Korean economic burden and it would repesent a good opportunity for the Korean environmental industry. Although, though Korea has had a difficult time due to the many obstacles, it could expect some benefit from a decrease in Northeast Asia environmental pollution through discussion of the issues at a meeting of environment ministers.The rate of Chinese environmental industrial growth has ranged from 15?20% on average. There is a large potential for investment in the environmental industry as the annual rate of output's growth in environmental industry is 15% and environmental industrial output expected to grow by 2.76 trillion from 2009 to 2012. However, an enterprise expecting to go into Chinese environmental industry market should cope with barriers common to closed-market such as lack of transparency, quasi-monopoly in the industry, and predominance of insider transactions and institutional hurdle for foreign companies.If a negotiation agenda, which is necessary to go into Chinese environmental market, was to be agreed, along with a linking to Northeast Asia's environmental pollution, it would be possible for Korea to have a higher chance to enter into Chinese environmental market. Furthermore, if an entry to Chinese environmental market was to be facilitated, the profit from an additional entrance to the market might mitigate the Korean financial burden caused by the support for China.This study suggests that a cooperation, which currently maintains depending on only support on the environmental problem of Northeast Asia, has a limit to implement stably with Game Theory. Furthermore, this research presents that a negotiation agenda not only facilitates agreement in environmental negotiations, it also enhances the prospe ct of fulfilling the negotiated terms with connection with way to go into Chinese environmental industry market as a alternative to overco me the limitations.