In this paper we study the effect of international technology spillovers on carbon leakage. We first develop and analyse two simple competing models for carbon leakage. The first model represents the pollution haven hypothesis. It focuses on the international competition between firms that...

The approach of using existing data on economic values of local ecosystem services for an assessment of these values at a larger geographical scale can be called “scaling up”. In a scaling-up exercise, economic values from a particular study site are transferred to another geographical...

We study the effect of countries' energy abundance on trade and sector activity, conditional on sector's energy intensity, using an unbalanced panel with 14 high-income countries from Europe, America and Asia, 10 broad sectors, and years 1970-1997. We find that (i) countries with large energy...

This paper addresses the timing and interdependence between innovation and environmental policy in a model of research and development (Ramp;D). On a first-best path the environmental tax is set at the Pigouvian level, independent of innovation policy. With infinite patent lifetime, the Ramp;D...

To what extent have national fiscal policies contributed to the decarbonisation of newly sold passenger cars? We construct a simple model that generates predictions regarding the effect of fiscal policies on average CO2 emissions of new cars, and then test the model empirically. Our empirical...

The economics of CO2 capture and storage in relation to the possibility of significant leakage of CO2 from geological reservoirs once this greenhouse gas has been stored artificially underground will be among the main determinants of whether CCS can significantly contribute to a deep cut in...

This paper addresses the impact of endogenous technology through research and development (Ramp;D) and learning by doing (LbD) on the timing of environmental policy. We develop two models, the first with Ramp;D and the second with LbD. We study the interaction between environmental taxes and...

This paper estimates the effect of environmental regulation on industry location and compares it with other determinants of location such as agricultural, education and Ramp;D country characteristics. The analysis is based on a general empirical trade model that captures the interaction between...

We develop a dynamic resource extraction game that mimics the global multi-generation planning problem for climate change and fossil fuel extraction. We implement the game under different conditions in the laboratory. Compared to a ‘libertarian' baseline condition, we find that policy...

Fear for oil exhaustion and its consequences on economic growth has been a driver of a rich literature on exhaustible resources from the 1970s onwards. But our view on oil has remarkably changed and we now worry how we should constrain climate change damages associated with oil and other fossil...