The 1998 Kyoto protocol signalled a new earnestness of international intent toward addressing the perceived risk of climate change. Kyoto demands that developed nations turn their economies so as to hit differentiated, sub-1990 level carbon emission targets within the next decade or so. But when...

Are people strategically ignorant of the negative externalities their activities cause the environment ? Herein we examine if people avoid costless information on those externalities and use ignorance as an excuse to reduce pro-environmental behavior. We develop a theoretical framework in which...

This paper investigates the interaction between consumers and producers in designing incentive mechanism for climate protection. Firms have material interests in building a moral reputation for those consumers who prefer buying from socially responsible firms. We examine optimal monetary...