Using a growth model that accounts for environmental and climate externalities, we take a closer look at the welfare effects of promoting biomass growth and the use of bioenergy, and especially the role of carbon neutrality. As an illustration, a hypothetical intensive forest cultivation project...

Necessary and sufficient conditions from optimal control theory that are typically used when studying finite and infinite horizon natural resource economics problems are stated. In the finite horizon case their use is demonstrated by deriving an explicit solution of a model describing the...

In analysis of atemporal models, comparative statics experiments are typically carried out, often employing envelope properties, such as Roy's identity, Hotelling's lemma and Shephard's lemma, in order to simplify the analysis. In analysis of dynamic models, such experiments are seldom...