We study adaptation to climate change in a federalist setting. To protect themselves against an increase in flood risk, regional governments choose among adaptation measures that vary with respect to their costs, the level of protection they offer, and the presence and nature of spillovers to...

Every production process gives rise to unintended outputs. We argue that whether an output is desired or undesired, is not given per se, but depends on the economic circumstances which change over time. As a result, by-products of one industry, first perceived as non-marketable wastes, may...