The Clean Development Mechanism (CDM) is an offset mechanism designed to reduce the overall cost of implementing a given global target for greenhouse gas (GHG) emissions in industrialized"Annex B"countries of the Kyoto Protocol. This paper discusses various ways in which CDM projects do not...

This paper studies interactions between a"policy bloc's"emissions quota market and an offset market where emissions offsets can be purchased from a non-policy"fringe"of countries (such as for the Clean Development Mechanism under the Kyoto Protocol). Policy-bloc firms enjoy free quota...

The Amazon rainforest, the world's largest and most biodiverse, represents a global public good of which 15 percent has already been lost. The worldwide value of preserving the remaining forest is today unknown. A"Delphi"exercise was conducted involving more than 200 environmental valuation...

While notoriously inefficient, fuel subsidies are widespread, and in many cases politically stable. This paper discusses and models various political economy aspects of fuel subsidies, focusing on gasoline and kerosene. Both economic and political are considered to explain differences in...

This paper studies a dynamic game where each of two large blocs, of fossil fuel importers and exporters respectively, sets either taxes or quotas to exercise power in fossil-fuel markets. The main novel feature is the inclusion of a"fringe"of non- strategic (emerging and developing) countries...

The Amazon Rainforest is a global public good. As such, and given that 15 percent of the original Amazon forest area has already been lost, households worldwide might be willing to pay to reduce or avoid additional losses. A full elicitation of global preferences for valuing preservation of the...

This paper discusses possible macroeconomic implications for low-income countries of increased revenue inflows that may follow from implementing certain global greenhouse gas mitigation policies. Such revenue sources include revenue from emissions offset mechanisms, direct investments, and...

This paper develops a global model of climate policy, focusing on the choice between tax and cap-and-trade solutions. The analysis assumes that the world can be split into two regions, with two fuels that both lead to carbon emissions. Region A consumes all fuels, and is responsible for defining...

This paper discusses short-run and long-run effects of"green stimulus"efforts, and compares these effects with"non-green"fiscal stimuli. Green stimulus is defined here as short-run fiscal stimuli that also serve a"green"or environmental purpose in a situation of"crisis"characterized by temporary...

Large and energy-intensive infrastructure investments with long life times have substantial implications for climate policy. This study focuses on options to scale down energy consumption and carbon emissions now and in the future, and on the costs of doing so. Two ways carbon emissions can be...