Baumbach et al.1 estimate that climate damages to the carbon storage and habitat services provided by Central American forests will cost society $51-314 billion per year through the end of the century. Their costs greatly exceed past estimates of the total value of critical biodiversity hotspots...

Projections of climate change damages based on climate-econometric estimates suggest that, without mitigation, global warming could reduce average global incomes by over 20% towards the end of the century (Burke et al., 2015). This figure significantly surpasses climate damages in Integrated...

We analyze welfare effects of trade in open-access renewable resources, which is induced by consumer love of variety in resource consumption. We consider two countries that are heterogeneous in incomes - high and low - and symmetric otherwise. We show that increasing trade freeness benefits the...

We analyze the external effects that arise in the decisions of firms on polluting emissions and in the decisions of parents on the number of births in an optimal control model with three stock variables representing population, economic capital, and pollution. We distinguish two different types...

We analyze the efficiency of urbanization patterns in a stylized dynamic model of urban growth with three sectors of production. Pollution, as a force that discourages agglomeration, is caused by domestic production. We show that cities are too large and too few in number in uncoordinated...

The authors propose a novel approach to analyze core—periphery models. By expressing the model in terms of relative wages, the authors characterize market equilibria and full equilibria in which no migration incentives exist. The authors reconsider Krugman’s model and show that...

Fish stocks can be considered as natural capital stocks providing harvestable fish. Fishing at low stock sizes means borrowing from the natural asset. While fishing a particular quantity generates immediate profits and income, an interest rate has to be paid in terms of foregone future fishing...

As growing attention is paid to climate change adaptation as an actual policy issue, the significant meaning of climate variability in adaptation decisions is beginning to be recognized. By using a real option framework for adaptation in agricultural production, we shed light on how climate...

We analyze the efficiency of urbanization patterns in a dynamic model of endogenous urban growth with two sectors of production. Production exhibits increasing returns to scale on aggregate. Urban environmental pollution, as a force that discourages agglomeration, is caused by domestic...