Integrated Assessment Models (IAMS) have helped us over the past decade to understand the interactions between the environment and the economy in the context of climate change. Although it has also long been recognized that adaptation is a powerful and necessary tool to combat the adverse...

Cost-benefit analysis is only applicable if the variances of both costs and benefits are finite. In the case of climate change, the variances of the net present marginal costs and benefits of greenhouse gas emission reduction need to be finite. Finiteness is hard, if not impossible to prove. The...

We discuss the implication of Weitzman's Dismal Theorem for climate policy and climate research.

Non-cooperative game theoretical models of self-enforcing international environmental agree- ments (IEAs) that employ the cartel stability concept of d'Aspremont et al. (1983) frequently use the assumption that countries can sign a single agreement only. We modify the assump- tion by considering...

The literature of welfare-maximising greenhouse gas emission reduction strategies pays remarkably little attention to equity. This paper introduces various ways to consider efficiency and equity simultaneously. Lower (higher) discount rates lead to higher (lower) emission reduction. Higher...

Using a bioeconomic model of the cod (Gadus morhua) and capelin (Mallotus villosus) fisheries of the Barents Sea, this study assesses the role of the fishermen’s behavior in reducing or intensifying the effects on the stocks caused by altered population dynamics. The analysis focuses on the...

This paper discusses methodological aspects of recent climate change damage studies. Assessing the total and/or marginal damage costs of environmental change is often difficult and it is certainly difficult in the case of climate change. A major obstacle is the uncertainty on the physical...

The effort to conserve fisheries resources and improve the welfare of small-scale fishing households is an important objective of Poverty Reduction Strategies (PRS) in Tanzania. The success of such strategies depends both on the variation and the level of efficiency within small-scale fishing...

A data set of the holiday destination choices of German tourists is segmented using phase in the life cycle; second, holiday motivation and holiday activities and third, the region of residency. For each segment demand is estimated using data on environmental and economic characteristics of...

We review the explosion of commentary that has followed the release of the Stern Review: The Economics of Climate Change, and agree with most of what has been written. The Review is right when it argues on economic grounds for immediate intervention to reduce emissions of greenhouse gases, but...