This paper links Hotelling's theory, in recent literature applied to an emission constrained environment, with the classical capacity planning framework to describe portfolio time-paths in electricity production. Emission targets are considered by a ceiling on the stock of pollution. We propose...

It would seem that Hotelling's rule and its related models of resource extraction and electricity production as largest consumer of scarce resources are closely related. However, although fixed costs and a non-storable product are essential in characterizing electricity markets, they can hardly...

We explore the optimal time path of carbon sequestration and carbon abatement in stabilizing CO2 levels under uncertainty of climate impacts. Using a two-period sequential decision making model, we analytically derive optimal rates for the two control variables, abatement and sequestration...

This paper analyzes the optimal management of a natural resource that can shift between different dynamics at random times. Using a classical linear control model I investigate how the switching behavior influences the optimal extraction of the resource. I use exogenous sea-surface temperature...

Modeling the economy and the planet's climate involves a great number of variables and parameters, some of them very uncertain given the current stage of knowledge regarding technology and the science of climate. The DICER model (or DICE-Regional) is a recently constructed Integrated Assessment...

The accident in Fukushima, Japan, in March 2011 has reactivated the discussion on how to meet ambitious climate mitigation objectives as some European countries reconsider the contribution of nuclear power in their energy mix. This study evaluates the impact of nuclear power reduction in Europe...

As a response to policy requirements to improve energy security, and to reduce greenhouse gas emissions, the use of bioenergy in Sweden has more than doubled since 1980. In 2008 bioenergy use in Sweden amounted to 108 TWh, or 18% of the total supply of primary energy. Nearly all of this...

Determining the optimum cutting age for timber resources has proved to be a very challenging problem for both economists and silviculturists. Based upon Samuelson's seminal work on this issue, the majority of economists have concluded that the optimum felling age occurs at a time when the net...

One of the key decisions that economists working on integrated studies of climate change face is the selection of the method of accounting for damages resulting from possible climate change across a long temporal scale and the method for the intertemporal comparison of the costs associated with...

Predicted increases in CO2 concentrations will affect forest ecosystems. In particular, they will impact tree growth, which in turn affects reproduction and mortality and consequently, forest planning. This study integrates different climate change scenarios of future biogeochemical processes...