Global warming is primarily caused by carbon produced by the burning of fossil fuels, especially coal. However, nuclear power is carbon free. We develop a dynamic model of the world energy economy that includes fossil fuels and nuclear power. If global warming is to be controlled, nuclear power...

The Kyoto Protocol aims to stabilize the concentration of carbon in the atmosphere, which is mainly caused by the burning of nonrenewable resources such as coal in power generation. We ask how a ceiling on the stock of emissions may a.ect the textbook Hotelling model. We show that when the...