Global impact assessment of unilateral climate policies is commonly based on multi-sector, multi-region computable general equilibrium (CGE) models that are calibrated to consistent accounts of production, consumption, and bilateral trade flows. However, global economic databases such as GTAP...

Weitzman's (2009) famous dismal theorem argues that “fat tails” in the distribution of warming may pose problems for cost–benefit analysis as it may imply that society might be willing to exchange today's consumption for future consumption at an infinite rate. His analysis is based on the...

This paper studies implications of uncertainty about CO2 backstop technology for cost effectiveness of CO2 emission reduction policy. For this purpose, we develop a dynamic general equilibrium model that captures empirical links between CO2 emissions associated with energy use, the rate and...

This paper studies the cost effectiveness of climate policy if there are technology externalities. For this purpose, we develop a forward looking model that captures empirical links between CO2 emissions associated with energy use, directed technical change and the economy. We find our most cost...

This paper estimates the shadow price of CO2 and explores its determinants for thermal power enterprises in China. Using a parametric quadratic directional distance function, we evaluate the inefficiency and shadow price of CO2 for 124 power enterprises in 2004, applying deterministic and...

Technological change is widely believed to play a crucial role in mastering the challenges of man-made climate change. The drivers and impacts of technological change have therefore become an important research issue in the field of climate economics. While models to analyze the interactions...

In view of pressing unemployment problems, policy makers across all parties jump on the prospects of renewable energy promotion as a job creation engine which can boost economic well-being. Our analytical model shows that initial labor market rigidities in theory provide some scope for such a...