A model of global oil production is applied to study cartelization by OPEC countries. We define a measure for the degree of cooperation, analogous to the market conduct parameter of Cyert et al., 1973, Geroski et al., 1987, Lofaro, 1999, and Symeonidis, 2000. This parameter is used to assess the...

Well-intended preannounced carbon mitigation policies can lead to adverse impacts such as the green paradox. This paper examines conditions impacting the prevalence of this phenomenon, when suppliers of carbon-free energy, similarly to carbon suppliers, can anticipate the implementation of...

Well-intended preannounced carbon mitigation policies can lead to adverse impacts such as the green paradox. This paper examines conditions impacting the prevalence of this phenomenon, when suppliers of carbon-free energy, similarly to carbon suppliers, can anticipate the implementation of...

We propose a model to reconcile the theory of inter-temporal non-renewable resource depletion with well-known stylized facts concerning the exploitation of exhaustible resources such as oil. Our approach introduces geological constraints into a Hotelling type extraction-exploration model. We...

This article extends one of the primary models used for calculating the Social Cost of Carbon (SCC), DICE, to account for uncertainty regarding economic damages per additional warming degree and uncertainty over the temperature response from doubling atmospheric CO2. Coupled with consumption...

There are two dimensions to the scarcity of exhaustible resources: physical and economic. While there is general consensus that oil has grown physically scarce overtime, it is less clear whether the same can be said of economic scarcity. We develop a procedure based on evaluating movements in...

Policy makers reformed the European Union (EU) Emission Trading System (ETS) to address low prices and price volatility. They reduced the cap and strengthened the Market Stability Reserve (MSR). The effectiveness of these reforms hinges on path dependency of emission and abatement technology....

Policy makers reformed the European Union (EU) Emission Trading System (ETS) by tightening the cap and strengthening the Market Stability Reserve (MSR) the market’s dynamic supply control mechanism. The capacity of the reformed EU ETS to deliver on the reform objectives is to be evaluated on...

Climate targets are key for focusing global efforts to limit anthropogenic climate change. Yet, they induce a time-consistency problem in that current decision makers set (ambitious) targets and leave costly abatement to future generations. We develop a reduced-form climate-economy integrated...

We show that power generators responded largely in line with theory to the European Union (EU) Emission Trading System (ETS). In particular, between 2008 and 2018: (i) the qualitative response of the EU ETS allowance price to variations in both the gas and coal price—the two preeminent drivers...