Recent survey evidence from the United States suggests that most Americans support domestic policies to address climate change, and this support is not conditional on other countries’ commitment levels. The finding is somewhat perplexing because climate change is by definition a collective...

This paper investigates the interaction between consumers and producers in designing incentive mechanism for climate protection. Firms have material interests in building a moral reputation for those consumers who prefer buying from socially responsible firms. We examine optimal monetary...

The 1998 Kyoto protocol signalled a new earnestness of international intent toward addressing the perceived risk of climate change. Kyoto demands that developed nations turn their economies so as to hit differentiated, sub-1990 level carbon emission targets within the next decade or so. But when...