The tendency to foreshorten time units as we peer further into the future provides an explanation for hyperbolic discounting at an inter-generational time scale. We study implications of hyperbolic discounting for climate change policy, when the probability of a climate-induced catastrophe...

Unintended consequences of a pre-announced climate policy are studied within a framework that allows for competition between polluting and clean energy sources. We show that early announcement of a carbon tax gives rise to a “green-paradox,” in that it increases emissions in the interim...

By signing a water sharing agreement (WSA), countries agree to release an amount of river water in exchange for a negotiated compensation. We examine the vulnerability of such agreements to reduced water flows. Among all WSAs that are acceptable to riparian countries, we find out the one which...