We study climate change in a model with a carbon-intensive and a green sector, each subject to stochastic productivity shocks, and show how the underlying economic structure affects the risk-adjusted discount rate and the climate risk premium in the social cost of carbon (SCC). Consumption...

For the first time, the Protocol negotiated by the third Conference of the Parties to the U.N. Framework Convention on Climate Change in Kyoto sets legally binding emission targets for the commitment period 2008-2012 for the industrial countries and countries in transition listed in Annex I....

As GHG emissions did not decline as anticipated early of the 1990ties Carbon Capture and Storage (CCS) recently gained more and more attention as a climate change mitigation option. However, CO2 suppressed in geological reservoirs is likely to lead to future releases of the CO2 stored. This...