In order to explore the impact of climate change on energy use, we estimate an energy demand model that is driven by temperature, prices and income. The estimation is based on an unbalanced panel of 62 countries over three decades. We limit the analysis to the residential sector and distinguish...

Integrated assessment models (IAMs) typically ignore the impact of climate change on economic growth, or simply scale down output and hence the entire future growth. In this manner, IAMs typically assume that the shocks caused by climate change impacts dissipate and have no persistence at all,...

The Ramsey rule for the consumption rate of discount assumes a transfer of money of a (representative) agent at one point in time to the same agent at another point in time. Climate policy (implicitly) transfers money not just over time but also between agents. I propose three alternative...