The geneva hydrocarbon protocol: Economic insights from a belgian perspective

This paper extends the methodology for the economic analysis of tropospheric ozone regulation reported in Repetto (1987). Firstly, the acid rain objective is explicitly incorporated by assigning an additional benefit to the acidifying precursors of ozone. Secondly, we introduce the transboundary dimension which is of particular importance to Europe. The methodology is applied to the evaluation of the costs and benefits of the Geneva Protocol on hydrocarbons for Belgium.     

Using Fast and Slow Processes to Manage Resources with Thresholds

Economists have relied on convexity assumptions for a long time but many natural resources that stem from ecosystems have non-convexities in their dynamics. This article illustrates the consequences of relaxing convexity assumptions for management and the role of fast and slow variables. The paper presents a general framework to handle systems with fast and slow variables, and illustrates the method using a model of coral reefs subject to fishing pressure. The insights obtained are used to discuss alternative management strategies.

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Competition in Markets for Depletable Resources with Setup Costs

This paper analyzes the impact on exhaustible resource markets of setup costs, a sparsely analyzed category of nonconvex production technologies. This paper proves that, even under idealized circumstances for competition, a competitive equilibrium will fail to exist in the presence of setup costs, for any utility and cost functions such that a planner would exploit exhaustible resource pools sequentially.JEL classifications: Q3, C62