The surface albedo feedback along with heat and moisture transport from the Equator to the Poles, are associated with polar amplification which is a well-established scientific fact. The present paper extends Brock and Xepapadeas (2017) to a non-cooperative framework with polar amplification, where regions decide emissions by maximizing own welfare. This can be regarded as a case of regional no...

This paper uses a real options approach to examine the impact of ramping rate restrictions imposed on hydro operations to protect aquatic ecosystems. We consider the effect on hydro plant value in order to inform policy decisions. A novelty of the paper is in examining the optimal operation of a prototype hydro power plant with electricity prices modelled as a regime switching process. We show ...

This paper analyses the impact of unilateral climate policy on firms’ international location strategies in emission-intensive sectors, when countries differ in terms of market size. The cases of partial and total relocation via foreign direct investment are separately considered. A simple international duopoly model highlights the differences between short-term and long-term effects. In the sho...

This article describes three essential elements of an effective post-2012 international cli-mate policy architecture: a framework to ensure that key industrialized and developingnations are involved in differentiated but meaningful ways, an emphasis on an extended timepath for emissions targets, and the inclusion of flexible market-based policy instruments tokeep costs down and ...

Information disclosure regulations are increasingly common, but their effects on the behavior of regulated firms are unclear. The 1996 Amendments to the Safe Drinking Water Act mandated that community drinking water suppliers issue to customers annual consumer confidence reports (CCRs), containing information on violations of drinking water regulations and on observed contaminant levels. We exa...

A forest owner with hyperbolic time preferences is considered. At each period the irreversible decision to harvest an old-growth forest could be taken. Conservation is the alternative. Future amenity value flow is uncertain while the net value of stumpage timber is known and constant. The decision problem is expressed as an optimal stopping problem and solved analytically in a time-inconsistent...

In renewable resource industries, labor is commonly paid with a share of operating profit rather than with a per unit-of-effort wage. This paper shows that the sharing agreements interact with fluctuations in the natural capital stock to cause inefficient investment levels and skew industry rents toward labor. As a consequence, optimal regulatory policy for such industries must account for the ...

This paper assesses the role of the public sector in adaptation to climate change. We first offer a definition and categorisation of climate change adaptation. We then consider the primary economic principles that can guide the assignment of adaptation tasks to either the private or the public sector, as well as those guiding assignment within the public sector itself. We find that the role of ...

This paper investigates the implications of U.S. withdrawal on environmental effectiveness, economic efficiency, and the distribution of compliance costs taking into account market power of the Former Soviet Union (FSU) on emission permit markets. While exercise of market power on behalf of FSU under U.S. compliance has no environmental impact as compared to competitive permit trade, it prevent...

The Environmental Kuznets Curve (EKC) shows the relationship between economic development, which is proxied in per capita income, and environmental quality. This study aims to view existence of EKC by arranging distribution 62 countries into four sub-samples based on income from 1992 2017. By applying panel data, model uses Error Correction Mechanism (ECM) method see effect growth quality (CO2 ...