This paper examines the operation of an emissions trading scheme (ETS) in a Cournot oligopoly.  We study the impact of the ETS on industry output, price, costs, emissions, and profits.  In particular, we develop formulae for the number of emissions permits that have to be freely allocated to...

This paper examines the amount of grandfathering needed for an emissions trading scheme (ETS) to have a neutral impact on firm profits. We provide a simple formula to calculate profit-neutral grandfathering in a Cournot model with firms of different sizes and a general demand function. Using...

Carbon leakage is a major concern for policymakers involved with environmental initiatives such as the European Union's emissions trading scheme and similar cap-and-trade proposals in the United States, Australia, and elsewhere.  This paper provides a framework for understanding the drives...

What is the optimal instrument design and choice for a regular attempting to control emissions by private agents in face of uncertainty arising from business cycles?  In applying Weitzman's result [Prices vs. quantities, Review of Economic Studies, 41 (1974), 477-491] to the problem of...

Following the transposition of the EU Energy Performance of Buildings Directive into Irish law, all properties offered for sale or to let in Ireland are obliged to have an energy efficiency rating.  This paper analyses the effect of energy efficiency ratings on the sale and rental prices of...

Africa is well endowed with potential for hydro and solar power, but its other endowments - shortages of capital, skills, and governance capacity - make most of the green options relatively expensive, while its abundance of hydro-carbons makes fossil fuels relatively cheap.  Current power...

While it is clear that natural disasters have serious welfare consequences for affected populations, less is known with respect to how local labour markets in low income countries adjust to such large shocks in particular the general equilibrium effects of the increase in the demand for...

Climate policy requires that much of the world's reserves of fossil fuels remain unburned.  This paper makes the case for implementing this directly through policy to close the global coal industry.  Coal is singled out because of its high emissions intensity, low rents per unit value, local...

Climate physics predicts that the intensity of natural disasters will increase in the future due to climate change.  One of the biggest challenges for economic modeling is the inherent uncertainty of climate events, which crucially affects consumption, investment, and abatement decisions.  We...

We study the effects of greenhouse gas emissions on optimum growth and climate policy by using an endogenous growth model with polluting non-renewable resources.  Climate change harms the capital stock.  Our main contribution is to introduce and extensively explore the naturally determined...