The basic problem of environmental regulation involves the government trying to induce a polluter to take socially desirable actions, which ostensibly are not in the best interest of the polluter. But the government may not always be able to precisely control the polluter. To further complicate...

We investigate the problem of subsidising afforestation when private information exists with respect to the level of private utility derived from the project. We develop a simple model that allows for an intelligent design of contracts when information is asymmetric. The model involves the...

In this paper we present some numerical simulations with the MacGEM model to evaluate the consequences of the recent Marrakesh agreements and the defection of the USA for the Kyoto Protocol. MacGEM is a global marginal abatement cost model for carbon emissions from fossil fuel use based on the...

The optimal investment to mitigate climate change crucially depends on the discount rate used to evaluate the investment’s uncertain future benefits. The appropriate discount rate is a function of the horizon over which these benefits accrue and the riskiness of the investment. In this paper,...

Neo-Austrian modelling is still a relatively unfamiliar technique to many ecological economists, although there is now a significant body of published work on the method and its applications. In this paper we aim to introduce the method, offering a rather brief sketch of its history, indicating...

This paper studies Krugman's (1991) core-periphery model and extends it to include environmental pollution. We present the first analytic proof that only an even spreading of the firms over both of the two regions or a complete agglomeration of all manufacturing firms in one region are possible...

Behavioural economics attracted attention from environmental economists: it should help to understand why people do not respond to environmental policy measures, based on neoclassical assumptions, as predicted by theory. Moreover, understanding motives and driving forces behind pro-social,...

The author presents a multi-impact economic valuation framework called the Social Cost of Atmospheric Release (SCAR) that extends the Social Cost of Carbon (SCC) used previously for carbon dioxide (CO2) to a broader range of pollutants and impacts. Values consistently incorporate health and...

Up to now a clear theoretical and methodological framework for economic-environmental analysis of environmentally damaging subsidies is lacking. Environmentally damaging subsidies are all kinds of direct and indirect subsidies aimed at achieving a certain (often non-environmental) goal that...

The author discusses issues of sustainable development in rural areas in Poland from the perspective of environmental economics. It is argued that the growths in the entropy of matter and energy which can be observed in urban areas is also increasing in rural areas. Expressions of this process...