This paper attempts to bring some central insights from behavioural economics into the economics of climate change. In particular, it discusses (i) implications of prospect theory, the equity premium puzzle, and time-inconsistent preferences in the choice of discount rate used in climate-change...

Concentration of greenhouse gases in the atmosphere influences the climate, which then alters the amount of primary energy for countries or regions where hydropower and wind power constitute important parts of the energy supply. Besides, the demand effect of temperature increases may be large in...

Traditionally, wood fuels, like other bioenergy sources, have been considered carbon neutral because the amount of CO2 released can be offset by CO2 sequestration due to the regrowth of the biomass. Thus, until recently, most studies assigned a global warming potential (GWP) of zero to CO2...

Using a non cooperative climate policy game applied in the literature, we find that an agreement with international emissions trading leads to increased emissions and reduced efficiency.