We examine the relative benefits of policy aimed at mitigating GHG emissions in Canada and globally. We find that while a carbon tax that holds the stock of global emissions below the 550 ppm level would yield positive net benefits for the world economy, the impact of such a tax on the Canadian...

This paper shifts the perspective of the recent green paradox literature towards the demand side. Based on a simple model, I show that a subsidy on input factors in a Cobb-Douglas production function may contribute substantially to postponing resource extraction into the future and, thereby, to...

Global warming is a worldwide and protracted phenomenon with heterogeneous local economic effects. In order to evaluate the aggregate and local economic consequences of higher temperatures, we propose a dynamic economic assessment model of the world economy with high spatial resolution. Our...

This paper compares the optimal dynamic choices between policies of mitigation and adaptation for three economies: Brazil, Chile and the United States. The focus is on the optimal role of mitigation and adaptation for “environmentally small economies,” i.e., economies that are witnessing an...