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  1. Endogenous emission caps always induce a green paradox
    Autor*in: Gerlagh, Reyer; Heijmans, Roweno; Rosendahl, Knut Einar
    Erschienen: [2019]
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    For any emission trading system (ETS) with quantity-based endogenous supply of allowances, there exists a negative demand shock, e.g. induced by abatement policy, that increases aggregate supply and thus cumulative emissions. We prove this green... mehr

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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    DS 63
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    For any emission trading system (ETS) with quantity-based endogenous supply of allowances, there exists a negative demand shock, e.g. induced by abatement policy, that increases aggregate supply and thus cumulative emissions. We prove this green paradox for a general model and then apply it to the details of EU ETS. In 2018, new rules for a Market Stability Reserve (MSR) were agreed on and implemented. We show that abatement policies announced in early periods but realized in the future, are inverted by the new rules and increase cumulative emissions. We provide quantitative evidence of our result for a model disciplined on the price rise in the EU ETS that followed the introduction of the MSR.

     
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    Weitere Identifier:
    hdl: 10419/207253
    Schriftenreihe: Array ; no. 7862 (September 2019)
    Umfang: 1 Online-Ressource (circa 39 Seiten), Illustrationen
  2. Closed-form solutions for optimal social distancing in a SIR model of COVID-19 suppression
    Autor*in: Gerlagh, Reyer
    Erschienen: May 2020
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    I present a stylized suspected-infected-recovered (SIR) model of COVID-19, with symptomatic versus asymptomatic patients, and social distancing intervention. The optimal suppress strategy has low-infection rates, enabling assumptions that support... mehr

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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    DS 63
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    I present a stylized suspected-infected-recovered (SIR) model of COVID-19, with symptomatic versus asymptomatic patients, and social distancing intervention. The optimal suppress strategy has low-infection rates, enabling assumptions that support closed-form solutions. The model predicts high costs of social distancing in comparison to health costs of the disease; it separates public versus private benefits of social distancing, and determines the required level of group immunity for relaxing social distance intervention. I extend the model with heterogeneous population for preferences over social contacts, health costs, and transmission. Heterogeneity in transmission intensity offers most opportunities for reduced costs under a differentiated social distancing policy.

     
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    Weitere Identifier:
    hdl: 10419/219153
    Schriftenreihe: CESifo working paper ; no. 8335 (2020)
    Umfang: 1 Online-Ressource (circa 26 Seiten)
  3. CO2 embedded in trade
    trends and fossil fuel drivers
    Autor*in: Weber, Sylvain; Gerlagh, Reyer; Mathys, Nicole A.; Moran, Daniel
    Erschienen: [2019]
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    The amount of CO2 embedded in trade has substantially increased over the last decades. We study the trends and some drivers of the carbon content of trade over the period 1995-2009. Our main findings are the following. First, the mix of traded goods... mehr

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    The amount of CO2 embedded in trade has substantially increased over the last decades. We study the trends and some drivers of the carbon content of trade over the period 1995-2009. Our main findings are the following. First, the mix of traded goods tends to have higher emission intensity than the average mix of final demand. Second, dirty countries tend to specialize in emission-intensive sectors. This finding suggests that trade liberalization may increase global emissions. Third, the share of goods produced in emission-intensive countries is rising, consequently increasing global emissions. Finally, we find that coal abundance is an important driver of net CO2 exports, and abundance increases exports. These findings highlight the importance of considering trade when designing CO2 reduction strategies. They also suggest that, if left unattended, continued growth in global trade will increase - not decrease - global CO2 emissions.

     
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    Sprache: Englisch
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    Format: Online
    Weitere Identifier:
    hdl: 10419/198922
    Schriftenreihe: Array ; no. 7562 (March 2019)
    Umfang: 1 Online-Ressource (circa 34 Seiten), Illustrationen
  4. Intergenerationele overdrachten van milieukapitaal
    Autor*in: Gerlagh, Reyer; Hofkes, Marjan W.
    Erschienen: 2000
    Verlag:  Wetenschappelijke Raad voor het Regeringsbeleid, Den Haag

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    Staatsbibliothek zu Berlin - Preußischer Kulturbesitz, Haus Unter den Linden
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    Quelle: Staatsbibliothek zu Berlin
    Sprache: Niederländisch
    Medientyp: Buch (Monographie)
    Format: Druck
    ISBN: 9034638243
    Schriftenreihe: Werkdocumenten / Wetenschappelijke Raad voor het Regeringsbeleid ; 106
    Schlagworte: Umweltökonomische Gesamtrechnung; Generationengerechtigkeit; Overlapping Generations; Wohlfahrtsökonomik; Theorie; Niederlande
    Umfang: 62 S
  5. Generous sustainability
    Autor*in: Gerlagh, Reyer
    Erschienen: 2014
    Verlag:  CESifo, München

    I define "generous sustainability" as a combination of two conditions: neither instantaneous maximin income nor attainable maximin income should decrease over time. I provide a formal definition and study applications to an AK economy, a Ramsey... mehr

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    Staats- und Universitätsbibliothek Bremen
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    Niedersächsische Staats- und Universitätsbibliothek Göttingen
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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    I define "generous sustainability" as a combination of two conditions: neither instantaneous maximin income nor attainable maximin income should decrease over time. I provide a formal definition and study applications to an AK economy, a Ramsey economy, and a Climate Economy. Generosity is shown to impose substantially stronger conditions on current actions compared to existing sustainability concepts. As a rule of thumb, generosity requires that GHG emissions are limited to levels that do not cause irreversible system damages if some group of people systematically value these systems.

     
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    Weitere Identifier:
    hdl: 10419/105120
    Auflage/Ausgabe: This draft: 14 November, 2014
    Schriftenreihe: Array ; 5092
    Umfang: Online-Ressource (24 S.)
  6. Cake-eating with private information
    Autor*in: Gerlagh, Reyer; Liski, Matti
    Erschienen: 2014
    Verlag:  CESifo, München

    We consider a model of cake-eating with private information. The model captures phenomena such as trust and "security of supply" in resource-use relationships. It also predicts supply shocks as an equilibrium phenomenon: privately informed sellers... mehr

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    Staats- und Universitätsbibliothek Bremen
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    Niedersächsische Staats- und Universitätsbibliothek Göttingen
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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    DS 63 (5050)
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    We consider a model of cake-eating with private information. The model captures phenomena such as trust and "security of supply" in resource-use relationships. It also predicts supply shocks as an equilibrium phenomenon: privately informed sellers have incentives to reveal resource scarcity too late, through a supply disruption, after which they exploit the consumers' inability to immediately adjust demand. Two puzzles that a standard exhaustible-resource theory cannot explain are resolved: sellers have an incentive to overstate their resources rather than emphasize scarcity, and consumers can switch to alternatives before exhausting the resource thereby leaving socially valuable resource in the ground.

     
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    Weitere Identifier:
    hdl: 10419/105104
    Schriftenreihe: Array ; 5050
    Umfang: Online-Ressource (41 S.), graph. Darst.
  7. Global demographic change and climate policies
    Autor*in: Gerlagh, Reyer; Jaimes, Richard; Motavasseli, Ali
    Erschienen: August 2017
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich

    Between 1950 and 2017, world average life expectancy increased from below-50 to above-70, while the fertility rate dropped from 5 to about 2.5. We develop and calibrate an analytic climate-economy model with overlapping generations to study the... mehr

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    Staats- und Universitätsbibliothek Bremen
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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    DS 63 (6617)
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    Between 1950 and 2017, world average life expectancy increased from below-50 to above-70, while the fertility rate dropped from 5 to about 2.5. We develop and calibrate an analytic climate-economy model with overlapping generations to study the effect of such demographic change on capital markets and optimal climate policies. Our model replicates findings from the OLG-demography literature, such as a rise in households' savings, and a declining rate of return to capital. We also find that demographic change raises the social cost of carbon, at 2020, from 28 euro/tCO2 in a model that abstracts from demography, to 94 euro/tCO2 in our calibrated model.

     
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    Sprache: Englisch
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    Format: Online
    Weitere Identifier:
    hdl: 10419/171081
    Schriftenreihe: Array ; no. 6617
    Umfang: 1 Online-Ressource (circa 47 Seiten), Illustrationen
  8. Induced technological change under technology competition
    Autor*in: Gerlagh, Reyer
    Erschienen: January 2003
    Verlag:  Fondazione Eni Enrico Mattei, [Milano]

    We develop a partial one-sector model with capital, natural resources, and labor as production factors, and endogenous technological change through research. Production exhibits increasing returns to scale. We compare the response of output and... mehr

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    We develop a partial one-sector model with capital, natural resources, and labor as production factors, and endogenous technological change through research. Production exhibits increasing returns to scale. We compare the response of output and resource use to a change in resource prices with and without induced technological change (ITC). It is shown that induced technological change is insignificant in reducing resource use when there is one representative technology and output demand is inelastic to prices. In contrast, substantial gains from ITC appear when we allow for two competing technologies that can be employed for production, while these technologies are good substitutes. Also, in case of two technologies, conditions are specified under which multiple balanced growth paths exist, and it is shown that because of ITC, a temporary resource tax can lock out the economy from a resource intensive path and lock in to a resource extensive path.

     
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    Sprache: Englisch
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    Weitere Identifier:
    hdl: 10419/118032
    Schriftenreihe: Array ; 2003, 5
    Schlagworte: Technischer Fortschritt; Innovationswettbewerb; Ökosteuer; Partielles Gleichgewicht; Theorie
    Umfang: 1 Online-Ressource (circa 33 Seiten), Illustrationen
  9. Natural resources
    a blessing or a curse?
    Autor*in: Papyrakis, Elissaios; Gerlagh, Reyer
    Erschienen: January 2003
    Verlag:  Fondazione Eni Enrico Mattei, [Milano]

    We examine empirically the effect of natural resource abundance on economic growth. We find that natural resources have a negative impact on growth when considered in isolation, but a positive impact on growth when including in the analysis other... mehr

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    We examine empirically the effect of natural resource abundance on economic growth. We find that natural resources have a negative impact on growth when considered in isolation, but a positive impact on growth when including in the analysis other variables such as corruption, investments, openness, terms of trade, and schooling, and treating these variables as independent. However, when we take account of the effect of natural resources on the other variables and furthermore consider the indirect effect on growth, that is, when we examine possible transmission channels, we find a strong negative effect of natural resources on growth. Finally, we calculate the relative importance of each transmission channel.

     
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    hdl: 10419/118036
    Schriftenreihe: Array ; 2003, 8
    Schlagworte: Natürliche Ressourcen; Wirtschaftswachstum; Regressionsanalyse; Vergleich; Welt
    Umfang: 1 Online-Ressource (circa 22 Seiten)
  10. Natural resources, investment and long-term income
    Autor*in: Papyrakis, Elissaios; Gerlagh, Reyer
    Erschienen: May 2004
    Verlag:  Fondazione Eni Enrico Mattei, [Milano]

    We study the negative correlation between natural resource-abundance and long-term income focusing on the savings-investment channel. We first present empirical evidence on this channel and then develop an OverLapping-Generations (OLG) model to study... mehr

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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    We study the negative correlation between natural resource-abundance and long-term income focusing on the savings-investment channel. We first present empirical evidence on this channel and then develop an OverLapping-Generations (OLG) model to study the issue. In this model, savings adjust downwards to income from natural resources, and investment in capital contributes to knowledge creation, a feature based on endogenous growth theory. We analyze the link from resource income future income through savings and investment. Natural resources have two counteracting effects on income. In the short term, resource wealth augments income, but in the long-term, it decreases income through a crowding-out effect on capital and knowledge. We discuss different scenarios under which the resource curse is most likely to take place.

     
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    hdl: 10419/117961
    Schriftenreihe: Array ; 2004, 87
    Schlagworte: Natürliche Ressourcen; Overlapping Generations; Endogenes Wachstumsmodell; Sparen; Investition
    Umfang: 1 Online-Ressource (circa 37 Seiten), Illustrationen
  11. Resource-abundance and economic growth in the U.S.
    Autor*in: Papyrakis, Elissaios; Gerlagh, Reyer
    Erschienen: April 2004
    Verlag:  Fondazione Eni Enrico Mattei, [Milano]

    It is a common assumption that regions within the same country converge to approximately the same steady-state income levels. The so-called absolute convergence hypothesis focuses on initial income levels to account for the variability in income... mehr

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    It is a common assumption that regions within the same country converge to approximately the same steady-state income levels. The so-called absolute convergence hypothesis focuses on initial income levels to account for the variability in income growth among regions. Empirical data seem to support the absolute convergence hypothesis for U.S. states, but the data also show that natural resource-abundance is a significant negative determinant of growth. We find that natural resource abundance decreases investment, schooling, openness, and R&D expenditure and increases corruption, and we show that these effects can fully explain the negative effect of natural resource abundance on growth.

     
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    Weitere Identifier:
    hdl: 10419/117938
    Schriftenreihe: Array ; 2004, 62
    Schlagworte: Regionales Wachstum; Wirtschaftliche Konvergenz; Natürliche Ressourcen; USA
    Umfang: 1 Online-Ressource (circa 47 Seiten), Illustrationen
  12. Induced technological change under carbon taxes
    Autor*in: Gerlagh, Reyer; Lise, Wietze
    Erschienen: September 2003
    Verlag:  Fondazione Eni Enrico Mattei, [Milano]

    We develop an economic partial equilibrium model for energy supply and demand with capital and labor as production factors, and endogenous technological change through learning by research and learning by doing. Our model reproduces the learning... mehr

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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    We develop an economic partial equilibrium model for energy supply and demand with capital and labor as production factors, and endogenous technological change through learning by research and learning by doing. Our model reproduces the learning curve typical for (bottom-up) energy system models. The model also produces an endogenous S-curved transition from fossil fuel energy sources to carbon-free energy sources over the coming two centuries. We use the model to study changes in fossil fuel and carbon-free energy use and carbon dioxide emissions induced by carbon taxes. It is shown that induced technological change accelerates the substitution of carbon-free energy for fossil fuels substantially, and can increase by factor 5 the cumulative emission reductions achieved through a carbon tax over the period 2000-2100.

     
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    hdl: 10419/118109
    Schriftenreihe: Array ; 2003, 84
    Schlagworte: Energiemarkt; Partielles Gleichgewicht; Technischer Fortschritt; Ökosteuer; Lernprozess; Simulation
    Umfang: 1 Online-Ressource (circa 35 Seiten), Illustrationen
  13. Escaping lock-in
    the scope for a transition towards sustainable growth?
    Autor*in: Gerlagh, Reyer; Hofkes, Marjan W.
    Erschienen: January 2002
    Verlag:  Fondazione Eni Enrico Mattei, Milano

    In this paper we develop a simple endogenous growth model with two competing production technologies and learning spillover effects between firms that use the same technology. Investments are directed to the technology with highest current and... mehr

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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
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    In this paper we develop a simple endogenous growth model with two competing production technologies and learning spillover effects between firms that use the same technology. Investments are directed to the technology with highest current and expected returns. Since current investments increase future returns through learning, the economy will usually lock in, that is specialise in one of the two technologies. In case the economy has selected a relative polluting technology, sustainable growth requires a transition towards the clean technology. We analyse the scope for (environmental) policies that induce such a transition.

     
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    Weitere Identifier:
    hdl: 10419/119621
    Schriftenreihe: Array ; 2002, 12
    Schlagworte: Endogenes Wachstumsmodell; Spillover-Effekt; Theorie
    Umfang: 1 Online-Ressource (circa 34 Seiten), Illustrationen
  14. Climate uncertainty and the necessity to transform global energy supply
    Autor*in: Zwaan, Bob van der; Gerlagh, Reyer
    Erschienen: June 2004
    Verlag:  Fondazione Eni Enrico Mattei, [Milano]

    This paper analyses the policy relevance of the dominant uncertainties in our current scientific understanding of the terrestrial climate system, and provides further evidence for the need to radically transform - this century - our global... mehr

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    This paper analyses the policy relevance of the dominant uncertainties in our current scientific understanding of the terrestrial climate system, and provides further evidence for the need to radically transform - this century - our global infrastructure of energy supply, given the global average temperature increase as a result of anthropogenic carbon dioxide emissions. We investigate the effect on required CO2 emission reduction efforts, both in terms of how much and when, of our uncertain knowledge today of the climate sensitivity to a doubling in them atmospheric CO2 concentration. Also the roles of carbon-free energy and energy savings, and their evolutions over time, are researched, as well as their dependence on some of our characteristic modelling features. We use a top-down model in which there are two competing energy sources, fossil and non-fossil. Technological change is represented endogenously through learning curves, and modest but non-zero demand exists for the relatively expensive carbon-free energy resource.

     
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    Weitere Identifier:
    hdl: 10419/117975
    Schriftenreihe: Array ; 2004, 95
    Schlagworte: Klimawandel; Luftreinhaltung; Treibhausgas-Emissionen; Klimaschutz; Nachhaltige Energieversorgung; Welt
    Umfang: 1 Online-Ressource (circa 29 Seiten), Illustrationen
  15. Time profile of climate change stabilization policy
    Autor*in: Gerlagh, Reyer; Hofkes, Marjan W.
    Erschienen: November 2004
    Verlag:  Fondazione Eni Enrico Mattei, Milano

    We develop an economic model for fossil-fuel and carbon-free energy supply and demand with capital and labor as production factors, and endogenous technological change through learning by research and learning by doing. We use the model to study... mehr

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    We develop an economic model for fossil-fuel and carbon-free energy supply and demand with capital and labor as production factors, and endogenous technological change through learning by research and learning by doing. We use the model to study inter-temporally efficient carbon taxes for climate stabilization targets. Calculations show an inverted U-curve with an initial rise of carbon-taxes that sets in motion the transition from fossil-fuels to carbon-free energy sources, followed by a drop in carbon taxes when the carbon-free energy sources have grown mature.

     
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    hdl: 10419/118011
    Schriftenreihe: Array ; 2004, 139
    Schlagworte: Endogenes Wachstumsmodell; Lernprozess; Ökosteuer; Partielles Gleichgewicht; Endogenes Wachstumsmodell; Energiemarkt
    Umfang: 1 Online-Ressource (circa 41 Seiten), Illustrationen
  16. Natural resources, innovation, and growth
    Autor*in: Papyrakis, Elissaios; Gerlagh, Reyer
    Erschienen: October 2004
    Verlag:  Fondazione Eni Enrico Mattei, [Milano]

    This paper investigates the connection between resource abundance and innovation, as a transmission mechanism that can elucidate part of the resource curse hypothesis; i.e. the observed negative impact of resource wealth on income growth. We develop... mehr

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    This paper investigates the connection between resource abundance and innovation, as a transmission mechanism that can elucidate part of the resource curse hypothesis; i.e. the observed negative impact of resource wealth on income growth. We develop a variation of the Ramsey-Cass-Koopmans model with endogenous growth to explain the phenomenon. In this model, consumers trade off leisure versus consumption, and firms trade off innovation efforts versus manufacturing. For this model, we show that an increase in resource income frustrates economic growth in two ways: directly by reducing work effort and indirectly by inducing a smaller proportion of the labor force to engage in innovation.

     
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    hdl: 10419/117998
    Schriftenreihe: Array ; 2004, 129
    Schlagworte: Natürliche Ressourcen; Wirtschaftswachstum; Innovation; Endogenes Wachstumsmodell
    Umfang: 1 Online-Ressource (circa 40 Seiten), Illustrationen
  17. A climate-change policy induced shift from innovations in energy production to energy savings
    Autor*in: Gerlagh, Reyer
    Erschienen: October 2004
    Verlag:  Fondazione Eni Enrico Mattei, [Milano]

    We develop an endogenous growth model with capital, labor and energy as production factors and three productivity variables that measure accumulated innovations for energy production, energy savings, and neutral growth. All markets are complete and... mehr

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    We develop an endogenous growth model with capital, labor and energy as production factors and three productivity variables that measure accumulated innovations for energy production, energy savings, and neutral growth. All markets are complete and perfect, except for research, for which we assume that the marginal social value exceeds marginal costs by factor four. The model constants are calibrated so that the model reproduces the relevant trends over the 1970-2000 period. The model contains a simple climate module, and is used to assess the impact of Induced Technological Change (ITC) for a policy that aims at a maximum level of atmospheric CO2 concentration (450 ppmv). ITC is shown to reduce the required carbon tax by about a factor 2, and to reduce costs of such a policy by about factor 10. Numerical simulations show that knowledge accumulation shifts from energy production to energy saving technology.

     
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    hdl: 10419/118001
    Schriftenreihe: Array ; 2004, 128
    Schlagworte: Klimaschutz; Endogenes Wachstumsmodell; Technischer Fortschritt; Ökosteuer; Energieeinsparung; Partielles Gleichgewicht; Simulation
    Umfang: 1 Online-Ressource (circa 29 Seiten), Illustrationen
  18. Going green
    framing effects in a dynamic coordination game
    Autor*in: Gerlagh, Reyer; Heijden, Eline C. van der
    Erschienen: 2015
    Verlag:  CESifo, München

    We experimentally study decision-making in a novel dynamic coordination game. The game captures features of a transition between externality networks. Groups consisting of three subjects start in a stable benchmark equilibrium with network... mehr

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    We experimentally study decision-making in a novel dynamic coordination game. The game captures features of a transition between externality networks. Groups consisting of three subjects start in a stable benchmark equilibrium with network externality. Over seven rounds, they can transit to an alternative stable equilibrium based on the other network. The alternative network has higher payoffs, but the transition is slow and costly. Coordination is required to implement the transition while minimizing costs. In the experiment, the game is repeated five times, which enables groups to learn to coordinate over time. We compare a neutral language treatment with a 'green framing' treatment, in which meaningful context is added to the instructions. We find the green framing to significantly increase the number of profitable transitions, but also to inhibit the learning from past experiences, and thus it reduces coherence of strategies. Consequently, payoffs in both treatments are similar even though the green framing results in twice as many transitions. In the context of environmental policy, the experiment suggests general support for 'going green', but we also find evidence for anchoring of beliefs by green framing; proponents and opponents stick to their initial strategies.

     
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    Schriftenreihe: Array ; 5618
    Umfang: Online-Ressource (38 S.), graph. Darst.
  19. Going green
    framing effects in a dynamic coordination game
    Autor*in: Gerlagh, Reyer; Heijden, Eline C. van der
    Erschienen: 2015
    Verlag:  Center for Economic Research, Tilburg

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    Schriftenreihe: Discussion paper / CentER for Economic Research ; 2015-054
    Umfang: Online-Ressource (37 S.), graph. Darst.
  20. Climate, technologyx, family size
    on the crossroad between two ultimate externalities
    Autor*in: Gerlagh, Reyer
    Erschienen: 18 October 2022
    Verlag:  CentER, Tilburg University, [Tilburg]

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    Schriftenreihe: Discussion paper / CentER ; no. 2022, 027
    Schlagworte: Climate change; R&D-based growth; Population level; Social Cost of Carbon
    Umfang: 1 Online-Ressource (circa 59 Seiten), Illustrationen
  21. Rational rationing
    a price-control mechanism for a persistent supply shock
    Autor*in: Gerlagh, Reyer; Liski, Matti; Vehviläinen, Iivo
    Erschienen: [2022]
    Verlag:  MIT Center for Energy and Environmental Policy Research, Cambridge, MA, USA

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    Schriftenreihe: Working paper series / MIT Center for Energy and Environmental Policy Research ; 2022, 014 (October 2022)
    Schlagworte: Rationing; price caps; supply shock; electricity market
    Umfang: 1 Online-Ressource (circa 46 Seiten), Illustrationen
  22. Regulating stock externalities
    Autor*in: Gerlagh, Reyer; Heijmans, Roweno
    Erschienen: [2018]
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    We develop a dynamic regulation game for a stock externality under asymmetric information and future market uncertainty. Within this framework, regulation is characterized as the implementation of a welfare-maximization program conditional on... mehr

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    We develop a dynamic regulation game for a stock externality under asymmetric information and future market uncertainty. Within this framework, regulation is characterized as the implementation of a welfare-maximization program conditional on informational constraints. We identify the most general executable programs and find these yield simple and intuitive time-consistent policy rules that implement the stochastic first best as long as a future market exists. We apply our theory to carbon dioxide emissions trading schemes and find substantial welfare gains are possible, compared to current practices.

     
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    Schriftenreihe: Array ; no. 7383 (December 2018)
    Umfang: 1 Online-Ressource (circa 48 Seiten), Illustrationen
  23. Regulating global externalitites
    Autor*in: Heijmans, Roweno; Gerlagh, Reyer
    Erschienen: 10 January 2019
    Verlag:  CentER, Center for Economic Research, Tilburg

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    Schriftenreihe: Discussion paper / CentER, Center for Economic Research ; no. 2019, 001
    Schlagworte: asymmetric information; regulatory instruments; policy updating; asymmetric uncertainty; decision making under uncertainty
    Umfang: 1 Online-Ressource (circa 23 Seiten)
  24. Family planning and climate change
    Autor*in: Gerlagh, Reyer; Lupi, Veronica; Galeotti, Marzio
    Erschienen: [2018]
    Verlag:  CESifo, Center for Economic Studies & Ifo Institute, Munich, Germany

    The historical increase in emissions is for one-fourth attributable to the growth of emissions per person, whereas three-fourths are due to population growth. This striking evidence is not represented in the majority of climate-economic studies,... mehr

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    The historical increase in emissions is for one-fourth attributable to the growth of emissions per person, whereas three-fourths are due to population growth. This striking evidence is not represented in the majority of climate-economic studies, which mostly neglect the environmental consequences of individuals' reproductive decisions. In this paper, we study the interactions between climate change and population dynamics. We develop an analytical model of endogenous fertility and embed it in a calibrated climate-economy model. Our results present family planning as an integral part of climate policies and quantify the costs of neglecting the interaction.

     
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    Schriftenreihe: Array ; no. 7421 (December 2018)
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  25. Climate policy commitment devices
    Autor*in: Dengler, Sebastian; Gerlagh, Reyer; Trautmann, Stefan T.; Kuilen, Gijs van de
    Erschienen: September 2017
    Verlag:  Fondazione Eni Enrico Mattei, Milano

    We develop a dynamic resource extraction game that mimics the global multi-generation planning problem for climate change and fossil fuel extraction. We implement the game under different conditions in the laboratory. Compared to a "libertarian"... mehr

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    We develop a dynamic resource extraction game that mimics the global multi-generation planning problem for climate change and fossil fuel extraction. We implement the game under different conditions in the laboratory. Compared to a "libertarian" baseline condition, we find that policy interventions that provide a costly commitment device or reduce climate threshold uncertainty reduce resource extraction. We also study two conditions to assess the underlying social preferences and the viability of ecological dictatorship. Our results suggest that climate-change policies that focus on investments that lock the economy into carbon-free energy sources provide an important commitment device in the intertemporal cooperation problem.

     
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    hdl: 10419/177243
    Schriftenreihe: Array ; 2017, 49
    Umfang: 1 Online-Ressource (circa 38 Seiten), Illustrationen