Given the ubiquitous scarcity of resources an economic approach is necessary in order to determine an optimal strategy of adaptation to climate change. In this paper we develop an economic framework for the study of adaptation which allows us to distinguish between decentralized adaptation by...

Die Klimakonferenz in Kopenhagen steht unmittelbar bevor. Ganz oben auf der Agenda steht ein Folgeabkommen des Kyoto-Protokolls, denn dieses Abkommen läuft 2012 aus. Hohe Erwartungen prägen diese Konferenz. Sowohl die großen entwickelten Volkswirtschaften, die derzeit drei Viertel der...

We derive the shape of optimal unemployment insurance (UI) contracts when agents can exert search effort but face different search costs and have private information about their type. We derive a recursive solution of our dynamic adverse selection problem with repeated moral hazard. Conditions...

The increase of the share of renewable energy in total energy production is a stated goal of environmental and industrial policy in many developed countries. Governments adopt regulation to support the investment into renewable energy infrastructure, in particular in power generation. Two main...

We estimate the impact of fiscal decentralization on different indicators of pollution for more than 80 countries from 1970 to 2000. Our cross country estimates show that fiscal decentralization increases pollution. However, higher quality of institutions can limit the destructive environmental...

Hydrogen is often seen as a promising future energy carrier given the major reliance of today?s transport sector on finite fossil fuels. This working paper assesses the macroeconomic effects of introducing hydrogen as fuel in passenger transport within the framework of the computable general...

This paper compares electricity market reforms in the European Union with reforms in Chile and Brazil. The paradigm of competitive market structures for the electricity sector, as developed in the economics literature, is outlined: competitive markets in generation and retailing and an...

Hinter der Forderung nach höherer Energieeffizienz stehen üblicherweise konkrete umwelt- und energiepolitische Ziele wie Klimaschutz, Versorgungssicherheit und Ressourcenschonung. Das vorliegende Papier analysiert diese Argumente und diskutiert mögliche Politikinstrumente zur Zielerreichung....

In the absence of an international agreement on climate policy, unilateral carbon abatement creates two problems: It tends to have a detrimental effect on domestic competitiveness, and it leads to an increase in carbon emissions abroad (leakage). This paper analyses two policies that have...