We model countries' choice of greenhouse gas (GHG) emissions as a dynamic game. Emissions generate immediate benefits to the emitting country but also increase atmospheric GHG concentrations that negatively affect present and future welfare of all countries. Because there are no international...

Environmental regulators often have imperfect information about regulated firms' abatement costs. In this paper we compare taxes and emissions permits in a dynamic setting in which firms behave strategically. The regulator updates policy over time based upon previous aggregate industry...

Preface -- Introduction -- Four economic questions about climate change -- How much pollution is too much? -- Ethics and economics -- Pollution and resource degradation as externalities -- The efficiency standard -- Measuring the benefits of environmental protection -- Measuring the costs of...