We explain the spatial concentration of economic activity when the cost of environmental policy – which is increasing in the concentration of pollution – acts as a centrifugal force, while positive knowledge spillovers and a site with natural cost advantage act as centripetal forces. We study the agglomeration effects caused by trade-offs between centripetal and centrifugal forces which eventually determine the distribution of economic activity across space.

Discounting has the dubious distinction of being the most controversial issue in social cost-benefit analysis. This is largely because choosing the discount rate will often dominate other choices a modeler makes. For example, consider how we might estimate future damages from greenhouse gas emissions.

In spite of the multiple layers of uncertainty surrounding natural science issues, most of the controversy over Stern’s The Economics of Climate Change concerned one number: the discount rate.

Using a sequential discrete choice experiment, we investigate preferences for distributing the economic burden of reducing CO2 emissions in the two largest CO2-emitting countries: the United States and China.

Private sector initiatives certifying that producers of goods and services adhere to defined environmental process standards are increasingly popular worldwide. According to proponents, they can circumvent chronic barriers to effective public sector environmental regulation in developing countries. But eco-certification programs will have limited effects on producers’ environmental performance if, as one would expect, they select for those already meeting certification standards.

International and domestic efforts to reduce greenhouse gas emissions require a coordinated effort from heterogeneous actors. This experiment uses a public good game with a climate change framing to consider whether cooperation is possible in just such a climate change context.

Climate change represents a serious threat to the economic growth potential in low income countries. Instead of investing in growth, they may be drawn into strife and conflict. Climate change and the global politics to deal with it, could however also present a number of interesting opportunities for developing countries.

This paper presents an empirical analysis of the role of different climate change adaptation strategies in supporting food productivity in Ethiopia. The analysis relies on unique primary survey data on 1000 farms producing cereal crops in the Nile Basin, Ethiopia.

Costa Rica: National level assessment of the role of economic instruments in the conservation policymix

POLICYMIX aims to contribute to achieving the EUs goals of reversing trends in biodiversity loss beyond 2010 through the use of cost-effective and incentive-compatible economic instruments. POLICYMIX focuses on the role of economic instruments in a mix of operational conservation policy instruments. The project includes seven case studies from six countries: Norway, Germany, Portugal, Finland, Brazil (Mato Grosso and Mata Atlantica) and Costa Rica.

Eco-certification of coffee, timber and other high-value agricultural commodities is increasingly widespread. In principle, it can improve commodity producers' environmental performance, even in countries where state regulation is weak. But eco-certification will have limited environmental benefits if, as one would expect, it disproportionately selects for producers already meeting certification standards.

The efficient governance of information-production is analysed in the context of the bio-technology industry. Here primary R&D generates pure abstract information on the nature of biological solution concepts, while secondary R&D generates commercial products marketable to consumers.