Can nuclear power, which is carbon free, solve the global warming problem? It is a tough sell in the advanced countries, but many new nuclear power plants are under construction in the developing world. We develop an empirical Hotelling model that accounts for the limited stock of uranium,...

Environmental agreements such as the Kyoto Protocol aim to stabilize the amount of carbon in the atmosphere, which is mainly caused by the burning of nonrenewable resources such as coal. We characterize the solution to the textbook Hotelling model when there is a ceiling on the stock of...