This paper analyzes the formation of self-enforcing climate agreements, or stable climate coalitions, when all countries have the option to fight climate change by purchasing (the right to extract) fossil-energy deposits. First, we consider the stand-alone deposit purchase policy and then...

Policy advocates frequently request for unilateral action to push forward climate protection in international negotiations. It is yet conventional wisdom in environmental economics that unilateral action does not pay for the first mover due to free-riding behavior of the other countries. How...

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...