The social cost of carbon (SCC) is a monetary measure of the harms from carbon emission. Specifically, it is the reduction in current consumption that produces a loss in social welfare equivalent to that caused by the emission of a ton of CO2. The standard approach is to calculate the SCC using...

This paper introduces geoengineering into an optimal control model of climate change economics. Together with mitigation and adaptation, carbon and solar geoengineering span the universe of possible climate policies. Their wildly different characteristics have important implications for climate...

The article discusses major public funding sources available to promote investments in renewable energy projects in Poland. The main sources include environmental funds that are financed from environmental charges levied on companies that cause environmental damage and operational programmes...

Consider a dynamic model with two countries or coalitions that consume and trade fossil fuel. A non-abating country owns the entire fuel stock and is not concerned about climate change, represented by a ceiling on the carbon dioxide concentration. The government of the other country implements...

We study a dynamic stochastic general equilibrium model in which agents are concerned about model uncertainty regarding climate change. An externality from greenhouse gas emissions damages the economy’s capital stock. We assume that the mapping from climate change to damages is subject to...

In this paper, we discuss the endogenous formation of climate coalitions in an issue-linkage regime. In particular, we propose to build a link to the issue of preferential free trade. Trade privileges exclusively granted to members of the climate coalition work as an incentive mechanism for...

We develop a 2-period emission trading model for a stock pollutant with demand shocks resolving over time. We find precise conditions for efficiency of a stabilization mechanism where cumulative available permits decrease with excess supply in early periods. Our model describes the stabilization...

Cities, home to more than half of the world's population and important economic hubs, are vulnerable to impacts of climate change and worthy to protect. To address these challenges, implementing climate change adaptation measures is inevitable. The paper provides insights into climate change...

Climate change is perceived as a threat to future human well-being and a challenge to sustainable development of local communities and economies world-wide. While some countries and regions are expected to experience slight gains from the climatic changes the other are exposed to major losses....

In this work, we employ an agent-based integrated assessment model to study the likelihood of transition to green, sustainable growth in presence of climate damages. The model comprises heterogeneous fossil-fuel and renewable plants, capital- and consumption-good firms and a climate box linking...