Many environmental problems involve the transformation of multiple harmful substances into one or more damage agents much in the same way as a firm transforms inputs into outputs. Yet environmental management differs from a firm’s production in one important respect: while a firm seeks...

Climate change has become a critical issue in the international policy making agenda. At the UNFCC conference in Bali 2007, countries decided on a roadmap to achieve a ‘secure climate future’. Given the commitment to limit the temperature increase to 2° Celsius relative to the preindustrial...

This paper addresses two basic issues related to technological innovation and climate stabilisation objectives: i) Can innovation policies be effective in stabilising greenhouse gas concentrations? ii) To what extent can innovation policies complement carbon pricing (taxes or permit trading) and...

The paper consists of a summary of the main sources of uncertainty about climate change, and a discussion of the major implications for economic analysis and the formulation of climate policy. Uncertainty typically implies that the optimal policy is more risk-averse than otherwise, and therefore...

It is now virtually certain that Australia and the world will experience significant climate change over the next century, as a result of human-caused emissions of carbon dioxide (CO2) and other greenhouse gases.