Arguments over equity during abatement goal setting is the principal obstacle to climate mitigation cooperation, while allocating global emissions to each country as deduced from the climate objective according to certain equitable principles offers an effective alternative to ending this...

In this paper we present empirical facts on oil exploitation and a model that can replicate some of these facts. In particular, we show that the time path of the oil price, on the one hand, and the extraction rate, on the other hand, seem to follow a U-shaped and an inverted U-shaped...

This paper considers the optimal control of small econometric models applying the OPTCON algorithm. OPTCON determines approximate numerical solutions to optimum control problems for nonlinear stochastic systems. These optimum control problems consist in minimizing a quadratic objective function...

In this paper an analytical framework similar to a robust control problem was developed for the one-state, one-control variable model to examine the response of the control to changes in the “free” parameter. However, in contrast to Gonzalez and Rodriguez (2003), the sign multiplying the...

In this note a one-state, one-control variable quadratic linear problem with robust control and discount factor is developed to examine the optimal response of the first-period control to changes in future model uncertainty. A change in future model uncertainty has an effect on the optimal...

This paper presents a computationally fesible procedure for the optimalcontrol and stochastic simulation of large nonlinear models with rationalexpectations under the assumption of certainty equivalence. Copyright Kluwer Academic Publishers 2003