‘Cap and trade' is the nucleus of the so-called flexible mechanisms of climate protection: the maximum use of a resource (here, a particular quantity of greenhouse gas emissions) is determined; from this, individual emission allowances are derived and allocated. Emission allowances can be...

Climate mitigation policy should be imposed over a long period, and spur development of new technologies in order to make stabilization of green house gas concentrations economically feasible. The government may announce current and future policy packages that stimulate current R&D in...

The paper considers a climate change growth model with three R&D sectors dedicated to energy, backstop and CCS (Carbon Capture and Storage) efficiency. First, we characterize the set of decentralized equilibria: A particular equilibrium is associated to each vector of public tools which includes...

EU and USA have taken two distinct approaches to tackle the climate issue and seize the advantages of the new business opportunities it has offered by creating a new economic space. While EU tried to address the cause of global warming by promoting clean technology, as a late entrant to this...

This article argues that international greenhouse gas (GHG) cap-and-trade schemes suffer from inherent problems of enforceability and verifiability that both cause significant inefficiencies and create inevitable tradeoffs between equity and efficiency. A standard result in the economic analysis...

Climate change will cause further loss of biodiversity. As negative effects are already taking place, adaptive measures are required to protect biodiversity from the effects of climate change. The EU policy on climate change and biodiversity aims at improving a coherent ecological network in...

This study used the Ricardian approach that captures farmer adaptations to varying environmental factors to analyze the impact of climate change on crop farming in Ethiopia. By collecting data from farm households in different agro-ecological zones of the county, net crop revenue per hectare was...

The purpose of this paper is to consider a valuation of GHG emission rights, especially CERs from CDM projects with a real option and game-theoretic approach. There has been no study that tried to prove a valuation of them with a real option and game-theoretic approach.The following results were...

A common thread runs through current Australian debates over laws for emissions trading and renewable energy. It is a preoccupation with “least cost” abatement, the notion that only policies with the lowest short-run economy wide cost should be implemented, regardless of other...

The method that Canada and other developed countries use to measure productivity growth generally ignores the pollutants that are produced by the industrial process. For example, greenhouse gas emissions, though an inevitable consequence of production processes, are excluded from the...