This study proposes a nonlinear cointegrating regression model based on the well-known energy balance climate model. Specifically, I investigate the nonlinear cointegrating regression of the mean of temperature anomaly distributions on total radiative forcing using estimated spatial...

We develop analytical models to investigate the economic behavior of consumers and firms, and apply them to conduct welfare analyses of environmental pricing schemes. We find that consumers tend to exert less effort than what firms aim to induce, with the social optimum located between them. In...

This paper establishes the statistical relationship between world business cycle and global temperature cycle. To amplify the signal to noise ratio, the two-state latent dynamics is estimated from the original process by utilizing the newly developed endogenous regime switching methodology of...