International differences in fuel taxation are huge, and may be justified by different local negative externalities that taxes must correct, as well as by different preferences for public spending. In this context, should a worldwide unique carbon tax be added to these local taxes to correct the...

Abstract We provide the closed form solution to the Dasgupta-Heal-Solow-Stiglitz (DHSS) model. The DHSS model is based on the seminal articles (Dasgupta and Heal, 1974) and (Solow, 1974) and Stiglitz (1974) and describes an economy with two assets, man-made capital and a nonrenewable resource...

The Dasgupta-Heal-Solow-Stiglitz model of capital accumulation and resource depletion poses the following sustainability problem: is it feasible to sustain indenitely a level of consumption that is bounded away from zero? We provide a complete technological characterization of the sustainability...

International differences in fuel taxation are huge, and may be justified by different local negative externalities that taxes must correct, as well as by different preferences for public spending. In this context, should a worldwide unique carbon tax be added to these local taxes to correct the...

We give a full characterization of the open-loop Nash equilibrium of a non-renewable resource asymmetric game. We show that (i) there almost always exists a phase where both supply simultaneously positive quantities, (ii) when the high cost mine is exploited by a number of firms that goes to...

We revisit the seminal growth model with exhaustible resources, the so called Dasgupta-Heal-Stiglitz-Solow model (DHSS). For this optimal control problem with two state variables, we explicitly characterize the dynamics of all the variables in the model and from all possible initial values of...

We specify and solve a closed-loop dominant firm nonrenewable resource game, with a price-taking fringe. We show that (i) the outcomes of the closed-loop and the open-loop dominant firm nonrenewable resource game (à la Salant 1976) coincide and (ii) when the number of fringe firms becomes...

We provide the closed form solution to the Dasgupta-Heal-Solow-Stiglitz (DHSS) model. The DHSS model is based on the seminal articles Dasgupta and Heal (Rev. Econ. Stud.,1974), Solow (Rev. Econ. Stud.,1974) and Stiglitz (Rev. Econ. Stud.,1974) and describes an economy with two assets, man-made...

In this paper we build a model to investigate the relation between trade and the environment in a dynamic setting. We extend a trade model similar to Copeland & Taylor (2003) by adding capital accumulation. We characterize optimal environmental policy in autarky and under international trade....