The objective of this paper is to show that the investments through the clean development mechanism (CDM) can exert a leverage effect to (i) make attractive to developing countries non-binding commitments and the adoption of national policies and measures; this comes as a guarantee of...

Introducing a carbon tax is difficult, partly because it suggests that current generations have to make sacrifices for the benefit of future generations. However, the climate change externality could be corrected without such a sacrifice. It is possible to set a carbon value, and use it to...

This article explores the critical role of labour market imperfections in climate stabilization cost formation, using a dynamic recursive energy-economy model that represents a second-best world with market imperfections and short-run adjustment constraints along a long-term growth path. The...