This paper examines the implications of restricting the tradability of carbon rights in the presence of induced technological change. Unlike earlier approaches aimed at exploring the tradability-technology linkage, we focus on climate-relevant “carbon-saving” technological change. This is...

The probabilities associated with global warming damage are likely to be continuously revised in the light of new information. Such revisions of probability are the defining characteristic of ambiguity, as opposed to risk. This paper examines how climate change ambiguity may affect optimal...

This paper provides a quantitative assessmet of a cost shift from labor to energy by means of a carbon/energy tax. The analysis utilizes a general equilibrium model for the European Community, placing the emphasis on the modeling of labor supply. The paper highlights the importance of the...