This paper explores the failure of countries to coordinate climate policies as an equilibrium outcome of a game where countries optimize in the face of both unprecedented economic and environmental uncertainty. Because issues associated with climate change are historically unprecedented and thus...

The energy challenges of resource depletion, security of supply and pollution have been effectively addressed by market entrepreneurship, technology, and measured regulation. The remaining sustainability issue for carbon-based energy reliance is anthropogenic or man-made climate change. Climate...

At first glance, climate change is an environmental issue. However, combating global climate change requires fundamental changes in the ways energy is used and produced. Given that energy is a prerequisite input to fuel economic growth and the necessity of all human beings, therefore, climate...

We examine banks’ exposure to climate transition risk using a bottom-up, loan-level methodology incorporating climate stress test based on the Merton probability of default model and transition pathways from the IPCC. Specifically, we match machine learning predictions of corporate carbon...

We construct measures of firms' beliefs about climate regulation, plans for future abatement, and current actions on emissions mitigation, using Carbon Disclosure Project data. These measures vary significantly around the Paris climate change agreement announcement. A dynamic model of a...

With the Swedish student Greta Thunberg, the protest for the environment has taken on a personal face. Her central statement is: "Politicians are doing far too little for climate protection. This is irresponsible towards the youth." Something new has happened: Suddenly young people have become...

Why do damages from changes in environmental quality differ across and within countries? Causal investigation of this question has been challenging because differences may stem from heterogeneity in cumulative exposure or differences in socioeconomic factors such as income. We revisit the...

Differential access to health care is commonly cited as a source of heterogeneity in the health effects of environmental exposure, yet little causal evidence exists to support such claims. We test this hypothesis by utilizing exogenous variation in both access to health care and environmental...

We study the effects of greenhouse gas emissions on optimum growth and environmental policy by using an expansion-in-varieties growth model with polluting non-renewable resources. Climate change harms the capital stock. Our main contribution is to introduce and extensively explore the naturally...