This paper builds on the assumption that OECD countries are (or will soon be) taking actions to reduce their greenhouse gas emissions. These actions, however, will not be sufficient to control global warming, unless developing countries also get involved in the cooperative effort to reduce GHG emissions. This paper investigates the best short-term strategies that emerging economies can adopt in...

Homeowners in areas adjacent to wildlands – in the Wildland-Urban Interface (WUI) – can mitigate the risk that their home will be damaged in a wildfire by creating “defensible space” on their property. This article explores homeowners’ incentives to invest in defensible space using a unique data set on 35 WUI communities in Nevada. This is the first study to analyze homeowners’ incentives to in...

What’s the role of unilateral measures in global climate change mitigation in a post-Durban, post 2012 global policy regime? We argue that under conditions of preference heterogeneity, unilateral emissions mitigation at a subnational level may exist even when a nation is unwilling to commit to emission cuts. As the fraction of individuals unilaterally cutting emissions in a global strongly conn...

This paper combines household production with an endogenous risk framework in order to understand how ex-ante private spending by coastal households against ex-post storm-inflicted damages would evolve given the public programs and the presence of a mangrove forest. The theoretical model confirms the influence of public protection programs and the mangrove forest on private defensive expenditur...

The paper analyzes the social discount rate under uncertainty. It employs a preference representation that enriches the characterization of uncertainty by a degree of confidence into probabilistic descriptions of the world. Special cases of the model comprise discounting under smooth ambiguity aversion as well as discounting under a disentanglement of risk aversion and aversion to intertemporal...

How effective adaptation practices in response to climate change are is a crucial question confronting farmers across the world. Using detailed plot-level data from a specifically designed survey conducted in 2013, this paper investigates whether there are productive benefits for farmers who adapt to climate change in Pakistan. The impact of implementing on-farm adaptation strategies is estimat...

Capitalizing on the most recent worldwide estimates of the impacts of climate change on agricultural production, this paper assesses the economic effects of climate change for Southeast Asian countries through 2080. The results suggest that the aggregate impacts of agricultural damages caused by climate change on the global economy are moderate. However, the uneven distribution of productivity ...

Equal treatment for the present and the future was required in two axioms introduced in the articles by Chichilnisky of the years 1996 and 1997. These articles provide a characterization of the decision criterion that satisfies the axioms and shows that the two axioms are equivalent to physical limits in the long-run future. The author proves that maximizing discounted utility with a long-run s...

To justify substantial carbon emission reductions, recent literature on cost-benefit analysis of climate change suggests discounting environmental quality at a lower discount rate than the standard consumption discount rate. Recent literature also shows that a theoretical foundation for such a lower environmental discount rate requires rising willingness-to-pay for environmental quality (WTP). ...

We undertake an empirical analysis of the effect of disaster aid on the demand for insurance using a unique panel dataset from Florida. We address endogeneity using instrumental variables that exploit political influence over aid amounts. In zip-codes that receive individual assistance grants, the average insurance coverage decreases by about $17,000. When the average grant given increases by $...