Climatic changes will affect the dynamics of a forest ecosystem. Consequently, carbon sequestration costs can only be estimated correctly if changes in climatic conditions are considered. This article determines the changes in mitigation costs of an optimal forest management regime in the...

It is widely assumed in the literature that environmental innovation reduces the marginal cost of pollution abatement. In this paper we show that this is not necessarily the case and we provide some unexpected outcomes.

Empirical evidence supports the existence of pollution abatement possibilities at negative costs, the so-called 'no-regret options'. We provide a microeconomic rationale for the existence of such potential at the firm level. An econometric application confirms that pollution abatement cost...

In this paper we study the dynamic general equilibrium path of an economy and the associated optimal growth path in a two-sector overlapping generation model with a stock pollutant. A sector (power generation) is polluting, and the other (final good) is not. Pollution is regulated by tradable...