Casella, Alessandra (contributor) - 2002 - [Elektronische Ressource]
rely on market-type behavior (for
example environmental regulation through tradable pollution licences), because it reduces … flow of utility over the whole time horizon.
Given a common discount factor *, the problem amounts to maximizing EU
i … given by:
(1) ()
Eu v p p p EV p EV
i
T
ii
T
jj j
i
T
j
i
T−
−
== + + +
1
1
01 0 1
034 2 2 21 …