In the presence of strategic complementarities stemming from peer effects in demand or from technological spill-overs, propagation and amplification mechanisms increase the effectiveness of climate policies. This suggests that climate goals can be met with smaller policy interventions. However,...

The response of an economy to a windfall of foreign exchange (be it aid or natural resource revenues) is often constrained by absorptive capacity. We provide a micro-founded analysis of absorption constraints, based on the idea that expanding the economy’s capital stock (in aggregate or...

1. A reconsideration of environmental federalism / Wallace E. Oates -- 2. Global environmental governance, political lobbying and transboundary pollution / Surjinder Johal and Alistair Ulph -- 3. Endogenous transfrontier pollution / Michael Rauscher -- 4. Allocating greenhouse gas emissions...