Conventional benefit–cost analysis incorporates the normally reasonable assumption that the policy or project under examination is marginal. Among the assumptions this entails is that the policy or project is small, so the underlying growth rate of the economy does not change. However, this...

Investments in long-lived, fossil-fuel intensive infrastructure can have large effects on carbon emissions over a long future period. We simulate a 2-period model of infrastructure investment with subsequent retrofit to purge its carbon emissions, under uncertainty about climate and retrofit...

According to the IPCC’s Fourth Assessment Report, global emissions of carbon dioxide have to be reduced by about 80 per cent by 2050 in order to stabilise the increase in global temperature at 2 to 2.4°C by 2100 compared with its pre-industrial level. An increase of only 2°C would bring...

China is undergoing modernization at a scale and speed the world has never witnessed. As climate change increasingly dominates the global agenda, China faces the challenge of shaping a new growth path in a climate-constrained world. The paper argues that China’s current climate and energy...