We analyze the effects of an environmental policy on the diffusion of a clean technology. Compared to previous articles we consider that the polluting firms are competitors on the output market and we analyze the effects of the policy on the share of adopting firms in the economy. We show that...

This paper discusses the role of the Clean Development Mechanism (CDM) on the market for carbon quotas and countries’ commitments to reduce their carbon emission levels. We show that the CDM contributes to an efficient funding of clean technology investments in least developed countries....

Two theses on the likelihood of international co-operation for achieving international optimality in transboundary pollution problems are being confronted: a pessimistic one and an optimistic one. On the one hand a "Small Stable Coalitions" (SSC) thesis — based on the stability of coalitions...

International environmental agreements aiming at correcting negative externalities generated by transboundary pollution are difficult to achieve for many reasons. Important obstacles arise from asymmetry in costs and benefits, and instability may occur due to the fact that coalitions of...

In this paper we test empirically with the Nordhaus and Yang (1996) RICE model the core property of the transfer scheme advocated by Germain, Toint and Tulkens (1997). This scheme is designed to sustain full co-operation in a voluntary international environmental agreement by making all...

Calling upon both positive and normative economics, we attempt to characterise the issues at stake in the current international negotiations on climatic change. We begin (Section 2) by reviewing the main features of the Protocol. Then (Section 3), we identify by means of an elementary economic...

The paper proves the existence and uniqueness of a noncooperative steady state in the context of a model of climate change. It also explores the possibility of cooperation and attainment of an optimal steady state. It is shown that the problem is similar to that in the static model (Chander and...

In this paper we introduce the CLIMNEG World Simulation (CWS) model for simulating cooperative game theoretic aspects of global climate negotiations. The model is derived from the seminal RICE model by Nordhaus and Yang (1996). We first state the necessary conditions that determine optimal...

This paper compares the level of uncertainty widely reported in climate change scientific publications with the level of uncertainty of the costs estimates of implementing the Kyoto Protocol in the United States. It argues that these two categories of uncertainties were used and ignored,...