This paper presents an adjusted Faustmann Rule for optimal harvest of a forest in the presence of a social cost of carbon emissions. A contribution of the paper is to do this within theoretical and numerical frameworks that take account of the dynamics and interactions of the forest's multiple...

Traditionally, wood fuels, like other bioenergy sources, have been considered carbon neutral because the amount of CO2 released can be offset by CO2 sequestration due to the regrowth of the biomass. Thus, until recently, most studies assigned a global warming potential (GWP) of zero to CO2...

Extensive tree planting on new areas has been suggested as a climate policy measure in Norway. This paper presents some preliminary calculations related to carbon dynamics of such a measure when the tree planting takes place on areas with relative young birch forests. The main finding, which is...

Linkage of cap-and-trade systems is typically advocated by economists on a general analogy with the beneficial linking of free-trade areas and on the specific grounds that linkage will ensure cost effectiveness among the linked jurisdictions. An appropriate and widely accepted specification for...

In a recent article Bas Jacobs found that the marginal cost of public funds (MCF) is one when taxation gives second best resource allocation. This conclusion is based on a claim that there are certain shortcomings with the standard definition of MCF, for example that the size and sign of the...

After the U.S. and Australian withdrawal from the Kyoto Protocol, and the extension of national quotas in the Bonn- and Marrakesh-agreements, meager environmental effects and a low price of emission permits is likely to be the outcome of implementation. This paper provides an analysis of these...

One of the proposed alternatives to Kyoto's cap-and-trade approach is a regime based on an internationally harmonized carbon tax. In this paper, we consider and compare the enforcement problems associated with a tax regime and a cap-and-trade regime, respectively. The paper tries to convey two...

Global per capita CO2 emissions have been relatively stable during the last decades. It has been suggested that the Intergovernmental Panel on Climate Change (IPCC) and its scenario makers have ignored this stability. This paper presents a simple analytical framework explaining generally the...

Recent contributions show that climate agreements with broad participation can be implemented as weakly renegotiation-proof equilibria in simple models of greenhouse gas abatement where each country has a binary choice between cooperating (i.e., abate emissions) or defecting (no abatement). Here...