This paper studies the influence of productivity, pollution sensitivity, and adaptive capacity on optimal mitigation … and adaptation in a two country global pollution model. We investigate the effects of changes of these parameters on the …

The paper considersan industry where the effects of pollution can be off-set by investing in adaption as a private good … pollution are independent from the quantity produced. The structure of the resulting oligopolistic market is endogenous in the … caused by private adaption leads to production costs above the social optimum, i.e. to under-adaption. When pollution …