-consistent policy rules that implement the stochastic first best as long as a future market exists. We apply our theory to carbon …

This paper extends the classical exhaustible-resource/stock-pollution model with the irreversibility of pollution decay …. Within this framework, we answer the question how the potential irreversibility of pollution affects the extraction path. We … example. To sum up, for any pollution level, we can identify a critical resource stock such that there exist multiple optima i …

reductions in external damages are health benefits, highlighting the importance of accounting for co-pollution impacts of carbon … to reduce climate and health externalities. …

which exhibits distortions due to pollution, external landfilling costs and inefficient product design. The allocative …

federation, we show that vertical fiscal externalities can be the major determinant of the welfare change following environmental … externalities - state governments can reduce greenhouse gas emissions by over 20 percent without any net cost to themselves. …