Levy, Amnon, Emission-Photosynthesis Imbalance and Climate Change: Forest Land under Intensified Uncertainty and Expected Utility Maximization, Department of Economics, University of Wollongong, Working Paper 08-11, 2011, 15.
This paper introduces photosynthesis into the motion-equation of the atmospheric stock of carbon-dioxide as a counterpart endogenous factor to emissions of this principal greenhouse gas from lands occupied by humans. By doing so, the paper links the stock of atmospheric carbon-dioxide, hence climate-change and uncertainty, to the allocation of usable land to humans and forest. The public planners can control this allocation and, consequently, the atmospheric stock of carbon-dioxide, climate-change and future usable land by setting land-rates in accordance with use. The analysis considers two types of land-use for expected utility maximizing humans and derives