A common critique to the Kyoto Protocol is that the reduction in emissions of CO2 by countries who comply with it will be (partly) offset by the increase in emissions on the part of other countries (carbon leakage). This paper analyzes the effect of technical change on carbon leakage in a...

The analysis of climate change is confronted with large uncertainties that need to be taken into account to arrive at meaningful policy recommendations. The main contribution of economics to this interdisciplinary task is to provide formal frameworks and techniques for analyzing climate policy...

This paper analyzes the impact of pollution and abatement policy within a stochastic endogenous growth model. The agents have environmental preferences, but they neglect their individual contribution to aggregate abatement. Therefore, environmental care is done by the government and financed via...

This paper reviews literature in and around new institutional economics to assess its contributions to, and limitations in, research on environmental decision-making and governance. The paper also proposes ways to increase the fruitfulness of new institutional approach for environmental...

The paper surveys economic aspects of sustainability and the use of complex ecological systems. In a first step, an economist's view of the concept of sustainability is presented. Then, a simple model of the economic use of a dynamic ecological system is discussed. It is shown how economically...

This paper surveys the literature on the relationship between international trade in goods and the factors and the environment. Traditional approaches based on the HEckscher-Ohlin trade model and more recent models looking at non-competetive market structures are discussed. Moreover, the paper...

Social norms and intrinsic motivations lead to voluntary environmentally responsible behaviour even in the absence of environmental policy. The paper shows that the introduction of environmental policy may lead to a reduction of voluntary abatement and sometimes may increase emissions and...