Climate risks have always been amongst the most important faced by human societies. Today the concern has new elements: the global nature of possible changes and the fact that they are driven by human activity. The risks posed by climate change are therefore endogenous and so outside of the...

A carbon tax has been widely discussed as a way of reducing fossil fuel use and mitigating climate change, generally in a static framework. Unlike standard goods that can be produced, oil is an exhaustible resource. Parts of its price reflects scarcity rents, i.e., the fact that there is limited...