This paper investigates how the hedonic equilibrium is modified when discrete consumer heterogeneity with horizontal differentiated housing supply is assumed. Our results are threefold. First, discrete consumer heterogeneity leads to a segmentation of the hedonic price function at equilibrium...

We analyze an endogenously growing economy in which production generates greenhouse gas emissions leading to global temperature increase. Global warming causes stochastic climate shocks, modeled by the Poisson process, which destroy part of the economy's capital stock. Part of the output may be...

According to several studies, agricultural carbon sequestration could be a relatively low cost opportunity to mitigate greenhouse gas concentrations. However the potential for storing additional carbon quantities in agricultural soils is critical, and depends on the past behavior of agricultural...

The optimal reaction to a pending climate catastrophe is to accumulate capital to be better prepared for the disaster and levy a carbon tax to reduce the risk of the hazard by curbing global warming. The optimal carbon tax consists of the present value of marginal damages, the non-marginal...

European countries have increased their use of environmental tax instruments by designing new tax bases. But, many countries have to face the opposition of the public opinion, for fear of the distributive consequences of these environmental tax reforms. This paper sheds light on the...

The paper develops a two-region endogenous growth model with climate change affecting the countries' capital stocks negatively. We compare two different policies aimed at supporting less developed countries: climate mitigation by rich countries, which diminishes the increase in stock pollution...

This model provides a mechanism explaining the surge in environmental culture across the globe. We discuss empirical evidence on the determinants of environmental culture and preferences. Based upon this empirical evidence, we develop an overlapping generations model with environmental quality...

In this paper we investigate optimal harvesting of a renewable natural resource. While in the standard approach the resource is located at a single point in space we allow for the resource to be distributed over the plane. Consequently, an agent who exploits the resource has to travel from one...

Most policy exercises that model the optimal control of greenhouse gas emissions have focused almost exclusively on the pollution problem in isolation from the fossil fuels scarcity problem. We argue that this approach misses important interactions between the two issues and, contrary to what is...

In a calibrated integrated assessment model we investigate the differential impact of additive and multiplicative damages from climate change for both a socially optimal and a business-as-usual scenario in the market economy within the context of a Ramsey model of economic growth. The sources of...