Economic thought on climate policy as an instance of environmental regulation is strongly influenced by the principle of a uniform carbon price. Economists acknowledge that this principle breaks down in a second-best world with other distortions, such as taxes and market power in domestic and...

In order to reach the two degree target it is necessary to control CO2 emissions also in fast growing emerging economies such as India. The question is how the Indian economy would be affected by e.g. including the country into an international climate regime. Existing analyses with either a...

"After the failure of the Copenhagen conference, climate finance has become the buzzword of international climate negotiations. A "fast-track" volume of 30 billion $ has been promised by industrialised countries for emissions mitigation and adaptation activities in developing countries. A...

The foundations of the climate regime are under threat, with significant implications for developing countries. This set of essays identifies two main threats to the climate regime. The first is the growing importance of emissions traded across national borders, currently accounting for up to...

We examine the distributional and efficiency impacts of climate policy in the context of fiscal consolidation in a dynamic general-equilibrium overlapping generations model of the US economy. The model includes a disaggregated production structure, including energy sector detail and advanced...

The Clean Development Mechanism (CDM) established under the Kyoto Protocol allows industrialized Annex I countries to offset part of their domestic emissions by investing in emissions-reduction projects in developing non-Annex I countries. We present a novel CDM modeling framework which can be...