Climate-related financial risks might have the potential to trigger the next systemic financial crisis, as recently stated by the Bank of International Settlements. In consequence, understanding these so-called Green Swan risks should be a key priority in financial decision-making and...

This paper explores implications of climate change for fiscal policy by assessing the impact of large scale extreme weather events on changes in public budgets. We apply alternative measures for large scale extreme weather events and conclude that the budgetary impact of such events ranges...

Stabilization of greenhouse gases at sustainable levels is the objective of the FCCC. Strategies to achieve this aim have been the object of intense debate. This paper focuses on one emissions trading system under scrutiny, Joint Implementation (JI). The basic premise of JI is that one nation...

The goal of the Framework Convention on Climate Change (FCCC) is to stabilize the concentration of greenhouse gases in the atmosphere at levels which avoid dangerous anthropogenic interference with the climate (United Nations, 1992). This paper examines the performance and cost characteristics...

The 1998 Kyoto protocol signalled a new earnestness of international intent toward addressing the perceived risk of climate change. Kyoto demands that developed nations turn their economies so as to hit differentiated, sub-1990 level carbon emission targets within the next decade or so. But when...

Questions of burden sharing receive increasing attention in the climate change regime. This paper introduces the WESA-mechanism (WESA = Walrasian Equilibrium with the Stand Alone upper bound) for the fair division of common property resources and monetary compensations. Furthermore, the...

This paper applies an economic model of climate change that is based on endogenous substitution of energy resources to determine the effect of advances in renewable technology on aggregate and sectoral fossil fuel use and energy prices. It uses a Nordhaus type partial equilibrium model of the...

When dealing with multiple greenhouse gases, we need some way to establish equivalence among gases. The Intergovernmental Panel on Climate Change (IPCC) has suggested the use of global warming potentials (GWPs) for making such trade-offs. We begin by examining the implications of such an...

The purpose of the present paper is to describe the role of uncertainty and technical change in an environmental context. Which impact does ecological uncertainty have on physical and R&D investments' decisions? How are pollution trajectories modified when uncertainty is taken into account? To...

One of the most important reasons by which Kyoto negotiations had suffered a setback at the COP 6 conference may be the unsatisfactory state about the previsions of Global Warming. This lack of knowledge may have such an influence on the formation of human opinion that we cannot to be amazed if...