We develop a one-dimemsional energy balance climate model with heat transportation across locations. We introduce the concept of po- tential world GDP at time t, and we introduce, through the temper- ature function, spatial characteristics into the damage function which make damages latitude...

A simpli��ed energy balance climate model is considered with the global mean temperature as the state variable, and an endogenous ice line. The movements of the ice line towards the Poles are associated with damage reservoirs where initial damages are high and then eventually...

This paper examines robustness in international pollution control emerg- ing from the regulator��s concerns regarding possible misspeci��cation of the natural system that is used to model pollution dynamics. Cooperative and noncooperative robust policy rules...

The precautionary principle (PP) applied to environmental policy stipulates that, in the pres- ence of physical uncertainty, society must take take robust preventive action to guard against worst-case outcomes. It follows that the higher the degree of uncertainty, the more aggressive this...

We explain the spatial concentration of economic activity, in a model of economic geography, when the cost of environmental policy - which is increasing in the concentration of pollution - and an immobile production factor act as centrifugal forces, while positive knowledge spillovers and...

We explain the spatial concentration of economic activity, in a model of economic geography, when the cost of environmental policy - which is increasing in the concentration of pollution - acts as a centrifugal force, while positive knowledge spillovers and a site with natural cost advantage act...

This paper develops linear quadratic robust control theory for a class of spatially invariant distributed control systems that appear in areas of economics such as New Economic Geography, management of ecological systems, optimal harvesting of spatially mobile species, and the like. Since this...

We analyze endogenous pattern formation resulting from forward-looking optimizing behavior of economic agents in the presence of spatial spillovers modelled by continuous kernels. We use Fourier methods to identify nec- essary and su�¢ cient conditions for the emergence of optimal...

Recent research developments in common-pool resource models emphasize the importance of links with ecological systems and the presence of non-linearities, thresholds and multiple steady states. In a recent paper Kossioris et al. (2008) develop a methodology for deriving feedback Nash equilibria...

We posit that consumers' preferences for more sustainable products depend on the perceived social norm, which in turn is shaped by average consumption in society. We explore the implications of such preferences for firms' incentives to introduce more sustainable products and to co-operate in...