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Adaptive Model-Predictive Climate Policies in a Multicountry Setting  

Thierry Bréchet, Carmen Camacho, and Vladimir M. Veliov

This chapter extends the use of integrated assessment models (IAMs) by defining rational policies based on predictive control and adaptive behavior. After a review of the main IAMs, the ... More

Consumer Demand and Welfare in Equilibrium Displacement Models  

Michael K. Wohlgenant

The scope and value of the equilibrium displacement models (EDM) methodology in consumer demand and welfare analysis is extensive. This article reviews the basic elements of the model. It ... More

An Economic Perspective on Agent-Based Models of Land Use and Land Cover Change  

Dawn Cassandra Parker

This chapter reviews agent-based models of land use change (ABM/LUCC), a new class of computational simulation models that directly represent the decisions and interactions of economic ... More

Emission Trading Systems and Technological Innovation: A Random Matching Model  

Angelo Antoci, Simone Borghesi, and Mauro Sodini

The present chapter paper investigates the functioning of an emission trading system and its impact on the diffusion of environmentally friendly technological innovation in the presence of ... More

Energy Balance Climate Models, Damage Reservoirs, and The Time Profile of Climate Change Policy  

William Brock, Gustav Engström, and Anastasios Xepapadeas

This chapter explores optimal mitigation policies through the lens of a latitude-dependent energy balance climate model, featuring an endoge-nously driven polar ice cap. We associate the ... More

Fairness in Climate Negotiations: A Meta-Game Analysis Based on Community Integrated Assessment  

Alain Haurie, Frédéric Babonneau, Neil Edwards, Phil Holden, Amit Kanudia, Maryse Labriet, Barbara Pizzileo, and Marc Vielle

This chapter deals with the problem of fair sharing of a safety cumulative emissions budget up to 2050. Using climate models one may infer the temperature change due to different possible ... More

Forecast-Based Pricing of Weather Derivatives  

Wolfgang Karl Härdle, Brenda López Cabrera, and Matthias Ritter

Forecasting based pricing of weather derivatives (WDs) is a new approach in valuation of contingent claims on nontradable underlyings. Standard techniques are based on historical weather ... More

Global Warming and R&D-Based Growth in a Trade Model between Environmentally Sensitive and Environmentally Neglectful Countries  

Francisco Cabo, Guiomar Martín-Herrán, and María Pilar Martínez-García

The chapter analyzes a bipolar world in which one region disregards global warming, while the other acknowledges the two-sided link between production and the emissions and concentration ... More

Renewable Energy: Models, Implications, and Prospects  

Franz Wirl and Yuri Yegorov

This chapter investigates the prospects of renewable energy from an economic point of view and presents a few economic models that address specific issues. Although the transition to ... More

The Social Cost of Carbon  

Richard S. J. Tol

After initially and unavoidably raising welfare, more pronounced climate change would by the end of the 21st century lead to a net annual loss, equivalent to the loss of a few percent of ... More

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