Environmental concerns are becoming increasingly popular and nowadays find their place on the policy-makers agenda. The basic question that arises in these circumstances is whether environmental theses are consistent or not with the economic theory. Environmental issues must go through the...

We show that for a broad class of technologies the relationship between policy stringency and the rate of technology adoption is inverted U-shaped. This happens when the marginal abatement cost (MAC) curves of conventional and new technologies intersect, which invariably occurs when emissions...

A two-sector OLG model illuminates previously unexamined intergenerationaleffects of a tax that protects an environmental stock. A traded asset capitalizes the economic returns to future tax- induced environmental improvements, benefiting the current asset owners, the old generation. Absent a...

This paper aims to verify if there is any effect in the income distribution for the Mexican economy when applying a tax on fossil fuels in order to reduce CO2 emissions. In order to reach this goal a computable general equilibrium model was built following the Shoven & Whalley method. It is...

This paper aims to verify if there is any effect in the income distribution for the Mexican economy when applying a tax on fossil fuels in order to reduce CO2 emissions. In order to reach this goal a computable general equilibrium model was built following the Shoven and Whalley method. It is...

Consider a model for optimal timing of emissions reduction, trading off the cost of the reduction against the time-additive aggregate of environmental damage, the disutility from the pollutant stock M(t) the infrastructure contributes to. Intuitively, the optimal timing for an infinitesimal...

This paper reviews the basic laws and policies of the Chinese government on environmental problems and discusses the issues in policy implementation, the prospect of solving the environmental problems in the future and some recent successes in the development of alternative energy and in...

This paper explores how a principal with time-inconsistent preferences invests optimally in technology or capital. If the current principal prefers her future self to save more, she can increase current investments complementary to future savings and decrease investments in the strategic...

Conventional wisdom argues that environmental policy is less costly if environmental policy induces the development of cleaner technologies. In contrast to this argument, we show that the cost of environmental policy (a reduction in emissions) may be larger with induced technical change than...

IEMS Faculty Associate Prof. Wenbo Wang examines how people become green by studying a policy change in China which obligated consumers to purchase plastic bags rather than receive them for free.