This paper builds on our previous work that used a non linear stochastic dynamic programming problem to solve for the optimal level of phosphorus discharged into a watershed. Typically, there is a trade off between profits from agriculture and environmental damage due to excessive levels of...

In this essay, it is shown that in the Hoel and Karp (2001) model of global warming, the optimal response of taxes for a stock pollutant with mutiplicative uncertainty is opposite when the control variable is pollution taxes instead of emissions. In this case, the election of control variable...

For many environmental problems regulators are uncertain about both the costs of abatement and the stock-related damages. For example, governments have imperfect information about damages caused by greenhouse gas stocks, and also about the costs of abating greenhouse gas emissions. They acquire...

In this paper we extend the deterministic model of Dechert and Brock (forthcoming) to stochastic models. First, we consider the lake game in a Brock and Mirman framework and show what happens to the Skiba point when there is uncertainty in the model. Second, we develop the model as an optimally...

This paper deals with an assessment of the economic costs of environmental policies in the Netherlands, using a dynamic Applied General Equilibrium model with bottom-up information on abatement techniques. Empirical abatement cost curves are used to determine substitution possibilities between...

This paper deals with the sustainable management of a renewable resource based on individual and transferable quotas (ITQs). The aim of that paper is to determine the conditions under which a regulating agency can achieve both ecological and economic objectives when agents are heterogenous and...

How is the design of efficient climate policies affected by the potentials for induced technological change and for future learning about key parameter uncertainties? We address this question using a new integrated climate-economy model incorporating endogenous technological change to explore...

The paper considers the application of Genetic Algorithms (GA) on coordination games with non-point pollution controlling systems including collective and random fines. During the GA simulations populations continually switch between the two symmetric Nash equilibria of the game. Coordination of...

In this paper we develop a likelihood based approach for estimating the joint equilibrium parameter distribution in random coefficient-random utility models. Under this demand specification and a profit maximizing supply specification, the equilibrium distribution of prices and quantities has an...