Climate change: discount or not? future generations don't care that much.

This paper proposes a new way to model the cost of climate change, based on a vintage capital modeling. Climate change destroys capital, according to the difference between the current climate and the climate that prevailed when a given durable was built. This assumption is meant to account for the adaptation of economic agents to the changing climate. The main result is that the carbon tax is much less sensitive to the rate of time preference than in the Stern-Nordhaus controversy. Moreover, despite an estimate of the cost in line with Nordhaus' estimate for the 21st century, we find an optimal carbon tax much lower than his one.global warming, stock pollution, carbon tax, discount rate

Coordination cost and the distance puzzle

Since 1960, transport costs have been falling, but international exchange did not become less sensitive to distance. We propose the following explanation for this puzzle: in a Dixit-Stiglitz framework, a decrease in transport cost favors trade, which may increase the international specialization (i.e. the number of varieties of intermediate goods used in production). An increased international specialization increases the need for coordination, and makes relatively more important for downstream firms to be close to their suppliers. As a result, trade increases with all partners, but more quickly for neighbors than for distant countries.Transport cost ; coordination cost ; international trade ; distance puzzle

Polluting nonrenewable resources: decentralization of the optimum in the presence of market power

In this paper, I study the strategic interactions between a country that owns a monopoly on a polluting non renewable resource (basically, the OPEC), and a representative of countries that both consume the resource and are hurt by its pollution. Both pollution control and rent captation are at stake in this model.nonrenewable resources ; stok pollution ; differetial games

International coordination over emissions and R&D expenditures: What does oil scarcity change?

In this paper, we studied the problem of international coordination in climate policy using three state-variables (oil marginal extraction cost, pollution and knowledge), two asymmetric countries and a differential game. We used a Monte Carlo procedure to obtain an insight into the behaviour of the model. We discutes the importance of R&D in international agreements and the impact of economic growth in developing countries.Climate change ; diffential games ; nonrenewable resources

Climate change: discount or not? future generations don't care that much.

This paper proposes a new way to model the cost of climate change, based on a vintage capital modeling. Climate change destroys capital, according to the difference between the current climate and the climate that prevailed when a given durable was built. This assumption is meant to account for the adaptation of economic agents to the changing climate. The main result is that the carbon tax is much less sensitive to the rate of time preference than in the Stern-Nordhaus controversy. Moreover, despite an estimate of the cost in line with Nordhaus' estimate for the 21st century, we find an optimal carbon tax much lower than his one

Niurong as the target for NGDP targeting: Mario Draghi's nightmare?

NGDP targeting is presented by some macroeconomists as a good practice for central banks. But what should be the target value? I propose a relevant measure: the Non Increasing Unemployment Rate Of Nominal Growth (NIURONG). I use NIURONG to show how difficult would have been for European Central Bank to implement a relevant monetary policy for each Euro Area country in front of post-2008 economic downturn

Climate change: discount or not? future generations don't care that much.

This paper proposes a new way to model the cost of climate change, based on a vintage capital modeling. Climate change destroys capital, according to the difference between the current climate and the climate that prevailed when a given durable was built. This assumption is meant to account for the adaptation of economic agents to the changing climate. The main result is that the carbon tax is much less sensitive to the rate of time preference than in the Stern-Nordhaus controversy. Moreover, despite an estimate of the cost in line with Nordhaus' estimate for the 21st century, we find an optimal carbon tax much lower than his one

Ressource non renouvelable polluante : décentralisation de l'optimum en présence d'un pouvoir de marché

In this paper, I study the strategic interactions between a country that owns a monopoly on a polluting non renewable resource (basically, the OPEC), and a representative of countries that both consume the resource and are hurt by its pollution. Both pollution control and rent captation are at stake in this model

Niurong as the target for NGDP targeting: Mario Draghi's nightmare?

NGDP targeting is presented by some macroeconomists as a good practice for central banks. But what should be the target value? I propose a relevant measure: the Non Increasing Unemployment Rate Of Nominal Growth (NIURONG). I use NIURONG to show how difficult would have been for European Central Bank to implement a relevant monetary policy for each Euro Area country in front of post-2008 economic downturn

International coordination over emissions and R&D expenditures: What does oil scarcity change?

In this paper, we studied the problem of international coordination in climate policy using three state-variables (oil marginal extraction cost, pollution and knowledge), two asymmetric countries and a differential game. We used a Monte Carlo procedure to obtain an insight into the behaviour of the model. We discutes the importance of R&D in international agreements and the impact of economic growth in developing countries