In 2007 the US Congress began considering a set of bills to implement a cap-and-trade system to limit the nation's greenhouse gas (GHG) emissions. The MIT Integrated Global System Model (IGSM)-and its economic component, the Emissions Prediction and Policy Analysis (EPPA) model-were used to...

This timely Handbook reviews many key issues in the economics of energy and climate change, raising new questions and offering solutions that might help to minimize the threat of energy-induced climate change.

Federal policy toward natural gas prices is once again the subject of national debate. Thought to be settled once and for all by the Natural Gas Policy Act of 1978 (NGPA), it reemerged as an issue in 1981. The proximate causes of the renewed controversy included candidate Ronald Reagan's...

This paper summarizes the main features of a linked CGE-MARKAL model system capable of simulating the macro-level economy and micro-level technology detail of the transport sector. Emphasis is given to issues of calibration of such a hybrid system, with references provided to already published...

The world oil market is a forecaster's nightmare: seldom have so many knowledgeable observers been so wrong so often. Prior to 1973, few foresaw the magnitude of the price jump that was possible under disrupted conditions, or predicted the years of relative stability that followed. The Iranian...

This paper presents a practical approach to project evaluation using techniques of modern financial economics, with a sample application to oil development under a complex tax system. The method overcomes shortcomings of conventional discounted cash flow (DCF) methods which are either imprecise...

Policies under consideration within the Climate Convention would impose CO2 controls on only a subset of nations. A model of economic growth and emissions, coupled to an analysis of the climate system, is used to explore the consequences of a sample proposal of this type. The results show how...