In this paper we study the optimal extraction of two fossil fuels when the economy
faces an announced constraint on CO2 emissions a la Kyoto. When high- and low-carbon
resources are perfect substitutes, announcement of ...
The increase in carbon dioxide emissions by some countries in reaction to an emission reduction by countries with climate policy (carbon leakage) is seen as a serious threat to unilateral climate policy. Using a two-country ...
Using a stylized theoretical model, we argue that current economic analyses of climate policy tend to over-estimate the degree of carbon leakage, as they abstract from the effects of induced technological change. We analyse ...
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