This paper surveys recent advances in climate models by emphasising how quantitative instruments can answer the main crucial questions addressed by the policymakers involved and therefore aid the formulation of effective global climate policies. The limits of existing models are highlighted and...

Although the economic effects of CO2 abatement depend substantially on the degree to which capital and labor can substitute for energy, the issue of energy-capital-labor substitution is surrounded by considerable uncertainty. In this paper we use econometrically estimated, sectorally...

Endogenous Uncertainty is that component of economic risk and market volatility which is propagated within the economy by the beliefs and actions of agents. The theory of Rational Belief (see Kurz [1994]) permits rational agents to hold diverse beliefs and consequently, a Rational Belief...

The paper studies the effects of green tax reforms within a walrasian computable general equilibrium model of the Italian economy calibrated on a microconsistent data set derived from the Input-Output table for the year 1990. Tax reforms increase taxation on the energy sector either through an...

In this paper we investigate the potential costs and benefits of a comprehensive green fiscal reform in Italy. Using a Computable General Equilibrium (CGE) model for the country, we simulate scenarios of progressive reduction of emissions for 13 polluting substances. It is shown that the...

This paper investigates the world economic implications of climate change policy strategies, especially the evaluation of impacts by an implementation of Clean Development Mechanisms, Joint Implementation and Emissions trading with a world integrated assessment model. Of special interest in this...

That climate policies are costly is evident and therefore often creates major fears. But the alternative (no action) also has a cost. Mitigation costs and damages incurred depend on what the climate policies are; moreover, they are substitutes. This brings climate policies naturally in the realm...

We are interested in three related questions: (1) How should accounting prices be estimated? (2) How should we evaluate policy change in an imperfect economy? (3) How can we check whether intergenerational well-being will be sustained along a projected economic programme? We do not presume that...

When economic agents decide their optimal environmental behavior, they have to take into account non continuos evolutionary trends and irreversible changes characterising environmental phenomena. Given the still non perfect biophysical and economic knowledge, decisions have to be taken in an...

The purpose of the present paper is to describe the role of uncertainty and technical change in an environmental context. Which impact does ecological uncertainty have on physical and R&D investments' decisions? How are pollution trajectories modified when uncertainty is taken into account? To...