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This paper contributes to the normative literature on mitigation and adaptation by analyzing their optimal policy … substantive emission reductions, do not succeed. The policy balance is realigned from adaptation toward more mitigation, and the … responsiveness of mitigation to changes in adaptation decreases. Compared to a world without climate catastrophes, risk reduces the …
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We study resource extraction by a non-renewable resource supplier who faces demand from two regions, one of which employs a tax on the imported resource and a subsidy on the available backstop technology, and one that has no environmental policy in place. The resource extraction path possibly...
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