How do markets economize on scarce natural resources? With an application to fossil energy, we emphasize technological change aimed at saving on the scarce resource. We develop quantitative macroeconomic theory as a tool for interpreting the past and thinking about the future. We argue, first,...

We construct an integrated assessment model with multiple energy sources - two fossil fuels and "green energy" - and use it to evaluate ranges of plausible estimates for the climate sensitivity as well as for the sensitivity of the economy to climate change. Rather than focusing on uncertainty...

During the last 10 years, I have spent most of my research time on the economics of climate change. Basically all of it has been done together with my colleagues Per Krusell at IIES and Conny Olovsson at Sveriges Riksbank. Being a truly cross-disciplinary field, the close interaction with many...