Compensation payments for voluntary conservation measures have become an important tool for biodiversity conservation worldwide. Each year substantial financial resources are spent on such measures, particularly in the context of agri-environmental schemes. In Europe, a debate has started on...

Environmental problems with unknown emission abatement cost and damage are analyzed. The game under consideration is static, and its expected payoff structure displays a prisoners’ dilemma. Even in this most unfavorable setting cooperation might arise if the involved countries are sufficiently...

The expansion of renewable energy is a central element of the German Federal Government's climate and energy policy. The target for 2020 is to produce 30% of the electricity from renewable energies. Wind power has been selected to be a major contributor to this change. Replacing old wind...

Although wind power is currently the most efficient source of renewable energy, the installation of wind turbines (WT) in landscapes often leads to conflicts in the affected communities. We propose that such conflicts can be mitigated by a welfare-optimal spatial allocation of WT in the...

Although wind power is currently the most efficient source of renewable energy, the cost of wind electricity still exceeds the market price. Subsidies in the form of feed-in tariffs (FIT) have been introduced in many countries to support the expansion of wind power. These tariffs are highly...

This paper models global environmental policy in a stochastic setting: reducing pollution not only reduces expected environmental damage but also its spread. The national incentives to cooperate are analysed under adverse conditions: expected payoffs are taken to have the structure of a (static)...