We present a modeling framework for simulating afforestation, deforestation and sustainable forest management that is composed of an interlinked economic model and a spatially explicit forestry model. The linkage of models allows addressing a number of important issues relevant to REDD+, in particular, estimation of cross-country comparable CO2 mitigation potential for individual countries and ...

Title IV of the 1990 Clean Air Act Amendments (CAAA) established a market for transferable sulfur dioxide (SO2) emission allowances among electric utilities. This market offers firms facing high marginal abatement costs the opportunity to purchase the right to emit SO2 from firms with lower costs, and is expected to yield cost savings compared to a command and control approach to environmental ...

Within the framework of a dynamic Computable General Equilibrium model this paper analyses the impact of trade restrictions on regional rates of return on capital, marginal costs of abatement and optimal climate policy. It will be shown that regional differences both in marginal costs of abatement and in the marginal productivity of capital are driven by market imperfection. With restrictions o...

We study the importance for climate policy of uncertainty concerning the gravity of climate change and thus the benefits of abatement. In particular, this uncertainty can have different effects on the benefits of early abatement and R&D. We explore these differences, which depend in large part on the curvature of the marginal abatement cost function—prudence, in other words. With convex margina...

The approximated cost-benefit function of pollution abatement from two integrated assessment models are employed in constructing of social welfare functions (SWF). Following a normative approach and evaluating equally the environmental goods in rich and poor countries, furthermore using distributional weights, a relation between elasticity of marginal utility e and inequality aversion parameter...

We compare the effects of taxes and quotas for an environmental problem where the regulator and polluter have asymmetric information about abatement costs, and environmental damage depends on pollution stock. An increase in the slope of the marginal abatement cost curve, or a decrease in the slope of the marginal damage curve, favors taxes. An increase in the discount rate or the stock decay ra...