This timely Handbook recognizes the emergence of climate change as the defining topic of our time. With public climate discourse growing more urgent every year, this Handbook brings together international experts from different economic disciplines to answer critical climate policy questions. Chapters present key ideas and policies to support and accelerate advances in three key areas: the political economy of climate change and climate policy, integrated assessment modelling, and economic and resource sustainability. Contributors discuss the distributional implications of climate change and how policymakers may respond in order to contribute to economic transformation in the midst of a global crisis. With reference to both theoretical and applied economics, this Handbook is critical reading for economists working in the field of climate policy and climate change. It will also appeal to a broader group of environmental scientists and scholars. Contributors include: L.M. Abadie, G.B. Asheim, J.K. Boyce, W.A. Brock, M. Budolfson, G. Chichilnisky, N. Chichilnisky-Heal, F. Dennig, J. Doyne Farmer, D.K. Foley, I. Galarraga, R. Hahnel, J. Hartwick, G. Heal, C. Hepburn, C. Hope, D. Iris, A. Markandya, P. Mealy, T. Mitra, T. Narasimhan, F. Nesje, I. Parry, A. Rezai, E. Sainz de Murieta, N. Schofield, B. Shang, A. Tavoni, L. Taylor, R. van der Ploeg, N. Vernon, P. Wingender, C. Withagen, A. Xepapadeas

Sustainable development, albeit a fashionable phrase, covers several substantive issues. In essence, as the Bruntlandt Report has it, it is "development that meets the needs of the present without compromising the ability of future generations to meet their own needs". Underlying this concern is the issue of modelling and evaluating alternative long-term dynamic paths open to an economy which, in an essential way, is dependent on environmental inputs. section one of this book presents two non-technical surveys of some of the questions in the areas of dynamics and uncertainty. The papers in section two then go on to model and evaluate alternative development paths of an economic - environmental system, especially with reference to their long-run properties. Of course, many of the processes and relationships underlying such models are uncertain, and the types of uncertainty and how to model them are considered in section three. There are many complex and interesting economic issues that arise when we consider how best to manage the "global commons" as privately produced public goods, and the present book deals with many of the related issues in an informative way.

This is the first book combining research on the Global Environment, Catastrophic Risks and Economic Theory and Policy. Modern economic theory originated in the middle of the twentieth century when industrial expansion coupled with population growth led to a voracious use of natural resources and global environmental concerns. It is uncontested that, for the first time in recorded history, humans dominate the planet, changing the planet's atmosphere, its bodies of water, and the complex web of species that makes life on earth. This radical change in circumstances led to rethinking of the foundations of human organization and, in particular, the industrial economy and the economic theory behind it. This book brings together new approaches on multiple levels: environmental sustainability requires rethinking in terms of economic theory and policy as well as the considerations of catastrophic risk and extremal events. Leading experts address questions of economic governance, risk management, policy decision making and distribution across time and space.

This book focuses on the main issues of trade and development, and on the attainment of the major development goals generally espoused in the international community: rapid development in the Third World, sustained economic expansion in the industrial countries and the eradication of deep inequalities and of extreme poverty. It consists of four parts. The first three give an overall analysis of the world economy, with commentary and conclusions on major issues of trade and development. The fourth part provides the intuitive basis for the main results within the context of the formal models, and rigorous proofs are found in the references given to the technical literature. The analysis is descriptive, focusing on the particulars of market behaviour and tracing the ways in which markets respond to policies, in the belief that policies cannot be viewed in a vacuum, but must be confronted with the responses of the market. The interplay of domestic policies and international markets is a main feature of the authors??? analysis.

This timely Handbook recognizes the emergence of climate change as the defining topic of our time. With public climate discourse growing more urgent every year, this Handbook brings together international experts from different economic disciplines to answer critical climate policy questions. Chapters present key ideas and policies to support and accelerate advances in three key areas: the political economy of climate change and climate policy, integrated assessment modelling, and economic and resource sustainability. Contributors discuss the distributional implications of climate change and how policymakers may respond in order to contribute to economic transformation in the midst of a global crisis. With reference to both theoretical and applied economics, this Handbook is critical reading for economists working in the field of climate policy and climate change. It will also appeal to a broader group of environmental scientists and scholars. Contributors include: L.M. Abadie, G.B. Asheim, J.K. Boyce, W.A. Brock, M. Budolfson, G. Chichilnisky, N. Chichilnisky-Heal, F. Dennig, J. Doyne Farmer, D.K. Foley, I. Galarraga, R. Hahnel, J. Hartwick, G. Heal, C. Hepburn, C. Hope, D. Iris, A. Markandya, P. Mealy, T. Mitra, T. Narasimhan, F. Nesje, I. Parry, A. Rezai, E. Sainz de Murieta, N. Schofield, B. Shang, A. Tavoni, L. Taylor, R. van der Ploeg, N. Vernon, P. Wingender, C. Withagen, A. Xepapadeas

Mathematical Economics is an authoritative collection of the most influential contributions essential to an understanding of this important area of economic science. These seminal papers illustrate the development of the field from its inception in the 19th century up to the present, and exhibit the power of mathematics to lead to new thinking which can illuminate the scientific structures underlying economic arguments. Many of these papers started new fields of economics, influencing deeply the way economists think about their world. They illustrate the extensive range of topics to which mathematics has been applied productively, and show the areas of mathematics which have proved valuable, including functional analysis, linear algebra, algebraic and differential topology, stochastic processes and dynamical systems. They also show the extent to which today's policy analysis rests on yesterday's mathematical economics. Anyone with an interest in economics as a science will find this collection indispensable. The collection is an essential part of any course using mathematical economics.

Climate change lends itself to both political economy and humor. Vogel argues that mainstream economics fails to recognize the thermodynamic nature of climate change, thereby missing the point of Northern appropriation of the atmospheric sink. The payment Ecuador seeks for not drilling in the Yasuni is equitable and efficient. Heeding the call of Deirdre (formerly Donald) McCloskey that economics needs humour, Vogel has written a scathing critique of economics-as-usual which also entertains.

Climate change lends itself to both political economy and humor. Vogel argues that mainstream economics fails to recognize the thermodynamic nature of climate change, thereby missing the point of Northern appropriation of the atmospheric sink. The payment Ecuador seeks for not drilling in the Yasuni is equitable and efficient. Heeding the call of Deirdre (formerly Donald) McCloskey that economics needs humour, Vogel has written a scathing critique of economics-as-usual which also entertains.

'These two volumes feature pieces by nearly all the important economic thinkers on climate, including Kenneth Arrow, Thomas Schelling, William Nordhaus, Nicholas Stern, and many others. It's a thorough education in this policy topic.' - Natural Hazards Observer This two-volume collection brings together critical essays on the economics of climate change, describing advances in the field ranging from the Kyoto Protocol carbon market, to sustainability criteria, international trade, and the management of catastrophic risks. Prepared by one of the leading academics in this pertinent and expanding field and including a new introductory essay to the collection, The Economics of Climate Change will certainly be an important resource for academics and policymakers alike.

Markets, Information and Uncertainty is a collection of essays by leading theorists offering powerful new insights on the role of uncertainty and information in today's market. This book features Kenneth Arrow on information and the organization of industry, Roy Radner on new technologies, Graciela Chichilnisky and Frank Hahn on human-induced uncertainty, Geoffrey Heal and Walter Heller on the creation of new markets and Edmund Phelps on unemployment. It is an authoritative collection offering imaginative and fresh approaches to economic theory.

This is the first book combining research on the Global Environment, Catastrophic Risks and Economic Theory and Policy. Modern economic theory originated in the middle of the twentieth century when industrial expansion coupled with population growth led to a voracious use of natural resources and global environmental concerns. It is uncontested that, for the first time in recorded history, humans dominate the planet, changing the planet's atmosphere, its bodies of water, and the complex web of species that makes life on earth. This radical change in circumstances led to rethinking of the foundations of human organization and, in particular, the industrial economy and the economic theory behind it. This book brings together new approaches on multiple levels: environmental sustainability requires rethinking in terms of economic theory and policy as well as the considerations of catastrophic risk and extremal events. Leading experts address questions of economic governance, risk management, policy decision making and distribution across time and space.

'The genius of Graciela Chichilnisky is recognized by economists and with this book she has focused that talent to the dire problem facing mankind. To survive we must do more than stave off a further rise of CO2 in the atmosphere. We need to reverse it if the planet is to be viable. Professor Chichilnisky's achievement along with her co-author Peter Bal is to show us the way to rescue our future.'Professor Edmund Phelps2006 Nobel Laureate in EconomicsDirector, Center on Capitalism and Society, Columbia University'In the world of economic theory, Graciela Chichilnisky is an A-list star.'The Washington Post'The team of Chichilnisky and Bal has exceptional skill in explaining complex topics with great clarity making it easy for non-scientists interested in climate change to read. They address the science of climate change, the complex international negotiations needed to reach a compromise between developing nations and the developed ones, and importantly the urgent need to find a way of extracting CO2 from the atmosphere and utilizing and sequestering it in a commercially profitable manner. The last topic has been almost completely ignored by the media.'Theodore Roosevelt IVManaging Director & Chairman of Barclays Cleantech InitiativeBARCLAYSThe Kyoto Protocol capped the emissions of the main emitters, the industrialized countries, one by one. It also created an innovative financial mechanism, the Carbon Market and its Clean Development Mechanism (CDM), which allows developing nations to receive carbon credits when they reduce their emissions below their baselines. The carbon market, an economic system that created a price for carbon for the first time, is now used in four continents, is promoted by the World Bank, and is recommended even by leading oil and gas companies. However, one critical problem for the future of the Kyoto Protocol is the continuing impasse between the rich and the poor nations.Who should reduce emissions - the rich or the poor countries?

of ecological (also biological) variables b which interact in their dynamic t evolution: det dbt dt = f (et, bt)' dt = 9 (et, bt)* Among the solution paths to this interaction between economic and ecologi cal variables, we look for those which are sustainable. Sustainable paths are typically those along which the values of certain key stocks are always pos itive, these key stocks being important environmental resources. The types of paths on which certain variables can be positive forever include station ary solutions with appropriate positivity conditions, or limit cycles or chaotic attractors satisfying the same positivity conditions. These paths, and the paths which approach them, constitute the set of sustainable paths. From amongst these we have to choose one or more which are in some sense the best. Note that rather than imposing positivity of certain stocks in the long run as a condition for sustainability, we would prefer to derive this as a characteristic of optimal solutions from more fundamental judgements about the valuation of stocks and flows: this is the route pursued by the papers in this volume. The introductory paper by Heal in Section I reviews these matters in gen eral terms, not going into technical details: it discusses the precedents for a concept of sustainability in welfare economics, and reviews alternative opti mality concepts and their connection to sustainability.

Markets, Information and Uncertainty is a collection of essays by leading theorists offering powerful new insights on the role of uncertainty and information in today's market. This book features Kenneth Arrow on information and the organization of industry, Roy Radner on new technologies, Graciela Chichilnisky and Frank Hahn on human-induced uncertainty, Geoffrey Heal and Walter Heller on the creation of new markets and Edmund Phelps on unemployment. It is an authoritative collection offering imaginative and fresh approaches to economic theory.

'The genius of Graciela Chichilnisky is recognized by economists and with this book she has focused that talent to the dire problem facing mankind. To survive we must do more than stave off a further rise of CO2 in the atmosphere. We need to reverse it if the planet is to be viable. Professor Chichilnisky's achievement along with her co-author Peter Bal is to show us the way to rescue our future.'Professor Edmund Phelps2006 Nobel Laureate in EconomicsDirector, Center on Capitalism and Society, Columbia University'In the world of economic theory, Graciela Chichilnisky is an A-list star.'The Washington Post'The team of Chichilnisky and Bal has exceptional skill in explaining complex topics with great clarity making it easy for non-scientists interested in climate change to read. They address the science of climate change, the complex international negotiations needed to reach a compromise between developing nations and the developed ones, and importantly the urgent need to find a way of extracting CO2 from the atmosphere and utilizing and sequestering it in a commercially profitable manner. The last topic has been almost completely ignored by the media.'Theodore Roosevelt IVManaging Director & Chairman of Barclays Cleantech InitiativeBARCLAYSThe Kyoto Protocol capped the emissions of the main emitters, the industrialized countries, one by one. It also created an innovative financial mechanism, the Carbon Market and its Clean Development Mechanism (CDM), which allows developing nations to receive carbon credits when they reduce their emissions below their baselines. The carbon market, an economic system that created a price for carbon for the first time, is now used in four continents, is promoted by the World Bank, and is recommended even by leading oil and gas companies. However, one critical problem for the future of the Kyoto Protocol is the continuing impasse between the rich and the poor nations.Who should reduce emissions - the rich or the poor countries?

This book focuses on the main issues of trade and development, and on the attainment of the major development goals generally espoused in the international community: rapid development in the Third World, sustained economic expansion in the industrial countries and the eradication of deep inequalities and of extreme poverty. It consists of four parts. The first three give an overall analysis of the world economy, with commentary and conclusions on major issues of trade and development. The fourth part provides the intuitive basis for the main results within the context of the formal models, and rigorous proofs are found in the references given to the technical literature. The analysis is descriptive, focusing on the particulars of market behaviour and tracing the ways in which markets respond to policies, in the belief that policies cannot be viewed in a vacuum, but must be confronted with the responses of the market. The interplay of domestic policies and international markets is a main feature of the authors' analysis.

El cambio climatico y la crisis de extincion entrelazados se prestan a la economia politica. Joseph Henry Vogel ha construido un argumento a favor de llevar a los paises ricos en carbono, pero pobres economicamente, a traves del cuello de botella de la economia de vaquero y hacia el "comercio en el derecho de emisiones" de los paises Anexo I del Protocolo de Kioto. Ecuador sirve como el modelo. "La economia de la Iniciativa Yasuni-ITT" es un contrapunto a muchos niveles a "El Informe Stern" por Sir Nicholas Stern. En el nivel mas basico, Vogel sostiene que Stern se equivoca por su falta de reconocimiento de la naturaleza del cambio climatico como termodinamica, con lo cual pierde de vista la apropiacion del Norte del sumidero atmosferico. El cambio a la termodinamica pone de relieve la legitimidad de una "deuda de carbono," que comienza a hacer tictac con el primer informe del Grupo Intergubernamental de Expertos sobre Cambio Climatico ((IPCC) por sus siglas en ingles) en 1990. A traves del lente de la teoria economica, la intransigencia comprensible de los paises pobres para asumir el "tope" en el "comercio en el derecho de emisiones" es una distorsion del sistema economico. No obstante, acorde con esa misma economia, una distorsion puede justificar otra. Esa otra distorsion es el pago que Ecuador busca por no perforar en la Reserva de la Biosfera Yasuni. Haciendo caso de la llamada de Deirdre (antes Donald) McCloskey de que la economia necesita mas humor, Vogel ha escrito una critica penetrante sobre la economia convencional que a su vez entretiene.

Markets are increasingly central to the resolution of environmental problems. They played a critical role in implementing the 1990 Clean Air Act of the United States, which has been instrumental in reducing acid rain in a cost-effective manner. They are also central to the global strategy adopted for limiting the emissions of greenhouse gases under the 1997 Kyoto Protocol and are being used for resolving conflicts over the use of other environmental resources, particularly water.

"Environmental Markets: Equity and Efficiency" represents the first systematic and in-depth study of the economic issues raised by this growing use of environmental markets. Focusing on the relationship between equity and efficiency -- which is central to many of the debates between industrial and developing countries -- the book explores the underlying economics and the possibilities for win-win solutions that benefit all parties to the problems.

Graciela Chichilnisky and Geoffrey Heal have been instrumental in developing the economic understanding required for the operation of environmental markets and for promoting their use among policy makers leading to the Kyoto Protocol. Contributors to this volume include established experts from international organizations, nongovernmental organizations, and academia, including Ra?l Estrada-Oyuela, who chaired the negotiating committee of the Framework Convention on Climate Change and the 1997 Kyoto meetings.