In permit trading systems, free initial allocation is common practice. A recent example is the European Union Greenhouse Gas Emission Trading Scheme (EU-ETS). We investigate effects of different free…

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…

Climate change is likely to exacerbate the dry conditions already experienced in southern Africa. When rainfall does come, it is likely to be in bursts of greater intensity, leading to erosion and…

India has been running large-scale interventions in the energy sector over the last decades. Still, there is a dearth of reliable and readily available price and income elasticities of demand to base…

This paper describes an integrated modeling approach to combine a top-down, recursive CGE model with a bottom-up, electricity-sector model to simulate two categories of policies. This paper describes…

Many greenhouse gas mitigation policies that shift fossil fuel use are accompanied by some hidden environmental benefits, so called “co-benefits” or “ancillary benefits.” Since these “co-benefits” are…

This study will review the past studies of the cost of land degradation in Ethiopia, assess the major methodological and conceptual issues and problems existing in the different approaches, compare…

Raising the price of fossil fuels is a key component of any effective policy to deal with climate change. Just how effective such policies are is decided by the price elasticities of demand. Many…

Environmentalists are often upset at the effect of discounting costs of future environmental damage, e.g., due to climate change. An often-overlooked message is that we should discount costs but also…

The Stern Review (2006) has come to symbolize something of a dividing line in the evolution of the common appreciation of the climate problem. It is fair to say that during the last decade there has…