This article builds on, and incorporates, an earlier one, in which I used four examples of doctoral theses at the Center for Energy and Environmental Policy to show the advantages of experiential learning in dealing with real-world problems of sustainable development. The purpose of the present...

Economic Experimental Games (EEGs), focused to analyze dilemmas associated with the use of common pool resources, have shown that individuals make extraction decisions that deviate from the suboptimal Nash equilibrium. However, few studies have analyzed whether these deviations towards the...

In 1931 Harold Hotelling published his seminal contribution to the economic theory of exhaustible resources. His major insight states that the prices of exhaustible resources - more specifically the scarcity rent - will rise at the rate of interest, and consumption will decline over time. The...

This study uses the methods of experimental economics to investigate possible reasons for the lack of empirical support for the Hotelling rule for nonrenewable resources. We argue that as long as resource stocks are large enough, producers may choose to (partially) ignore the dynamic component...

Tackling climate change is one of the highest challenges which the world economy is currently facing. The European Green Deal, adopted in 2019, sets the European roadmap towards a net-zero greenhouse gas emissions economy. The food system is heavily responsible for greenhouse gas emissions and...

Mit dem Förderschwerpunkt »Ökonomie des Klimawandels« förderte das Bundesministerium für Bildung und Forschung 27 Forschungsprojekte, die wirtschaftliche Aspekte des Klimawandels untersuchten. Im Rahmen der Begleitaktivitäten zu diesem Förderschwerpunkt koordinierten das Zentrum für...

We develop a tractable RBC model of the stock market with heterogenous firms. Shares value rests on the rent extracted from proprietary technology à la Dixit-Stiglitz. We prove the existence and uniqueness of the fundamental equilibrium. Closed form solutions are provided for the market...

This paper presents a laboratory experiment that directly tests the theoretical predictions of consumption choices under rational inattention. Subjects are asked to select consumption when income is random. They can optimally decide to reduce uncertainty about income by acquiring signals about...