This paper introduces to the main policy research issues that the interrelationship between environmental and economic problems has recently emphasised. Economists have traditionally encouraged the use of incentive-based instruments in place of command and control regulation. The starting point...

The stabilisation of GHG atmospheric concentrations at levels expected to prevent dangerous climate change has become an important, global, long-term objective. It is therefore crucial to identify a cost-effective way to achieve this objective. In this paper we use WITCH, a hybrid...