Using a standard Hotelling model of resource exploitation, we determine the optimal consumption paths of three energy resources: dirty coal, which is depletable and carbon-emitting; clean coal, which is also depletable but carbon-free thanks to an abatement technology (CCS: Carbon Capture and...

We characterize the optimal exploitation paths of two perfect substitute primary energy resources, a non-renewable polluting resource and a carbon-free renewable one. Both resources can supply the energy needs of two sectors. Sector 1 is able to reduce its carbon footprint at a reasonable cost...

Carbon leakage occurs when carbon-priced low-emission domestic products are replaced with high-emissions foreign products. In a trade model with endogenous emissions abatement, we investigate the impact of three policies aimed at mitigating carbon leakage: free emission allowances, Carbon Border...