Some externalities, such as global warming, involve complex relationships between emissions and an environmental state variable, with effects over lags of uncertain length. Coming up with theoretically-motivated and practical policy options in such cases has proven difficult. Deterministic...

This paper applies principal component analysis to investigate the linkages, or dominant co-fluctuation patterns, of per capita carbon dioxide emissions across countries for the time period 1950–2000. Energy resource world markets are investigated as an offsetting mechanism possibly...