The Stern Review reported a social cost of carbon of over $300/tC, calling for ambitious climate policy. We here conduct a systematic sensitivity analysis of this result on two crucial parameters: the rate of pure time preference, and the rate of risk aversion. We show that the social cost of...

Under European Union proposals for CO2 emission reduction between 2013 and 2020, a Member State can transfer to another Member State the right to use its unused Clean Development Mechanism (“CDMs”) credits. The paper addresses three issues in relation to these CDM Warrants (“CDMW”)....

Previous versions of the FUND model assumed, like many integrated assessment models, that the carbon cycle is independent of climate change. I here introduce a feedback through which warming leads to higher net emissions. This increases the atmospheric concentration of carbon dioxide in the year...

This paper applies the theory of social situations to international environmental agreements on greenhouse gas emission reduction. The usual pessimism on the size of stable coalitions among world regions is challenged for two alternative cases, namely by introducing farsightedness and by...

This paper warns against the risk of underestimating the costs -and the uncertainty about the costs- of achieving stringent stabilization targets. We argue that a straightforward review of integrated assessment models results produces biased estimates for the more ambitious climate objectives...