We provide counterexamples to the idea that mitigation of greenhouse gas emissions, and adaptation to climate change, are always substitutes. We consider optimal mitigation policy when climate damages follow a geometric Brownian motion process with positive drift and mitigation is lumpy. Climate...

This paper estimates the aggregate demand for gasoline in Senegal from 1970 to 2008. The long-term and short-term elasticities of demand with respect to gasoline prices and income are of paramount interest in this study. In Senegal, rising food prices, unemployment and shortage of electric...

In this paper we use the CGE model DART to assess the economic impacts and optimality of different aspects of the EU climate package. A special focus is placed on the 10% biofuel target in the EU. In particular we analyze the development in the biofuel sectors, the effects on agricultural...

Increasing attention is being given to the option of engineering the climate via Solar Radiation Management (SRM) as a potential component in future climate policies. We set up a quantitative model to analyze efficient levels of SRM deployment against the climatic and economic background...

Improving the energy efficiency of building stock, commercial equipment, and household appliances can have a major positive impact on energy use, carbon emissions, and building services. Sub-national regions such as the U.S. states wish to increase energy efficiency, reduce carbon emissions, or...

This paper provides an experimental analysis of a simultaneous energy-emissions market under conditions of market power. The experimental design employs real-world institutional features; including stochastic demand, permit banking, inter-temporal (multi-round) dynamics, a tightening cap, and...

In this paper, we estimate the demand for road diesel in Canada using aggregate annual data for the period 1986–2008. Using a partial adjustment model (PAM), we find short and long run price elasticities of −0.43 and −0.8 respectively. However, using cointegration techniques, we obtain...

Thermoelectric power plants depend on cooling water drawn from water bodies. Low river run-off and/or high water temperatures limit a plant's production capacity. This problem may intensify with climate change. Our study quantifies the impact of forced capacity reductions on market prices,...

Curbing national carbon emissions and clarifying regional carbon reduction responsibility are two challenges faced by China, both of which are influenced by interregional trade. To exclude the influence of trade balance, this paper proposes a methodology to parcel the pollution haven hypothesis...

This paper uses the computable general equilibrium model WorldScan to analyse interactions between EU's air pollution and climate change policies. Covering the entire world and seven EU countries, WorldScan simulates economic growth in a neo-classical recursive dynamic framework, including...