Habermacher, Florian; Lehmann, Paul - In: Environmental and Resource Economics 76 (2020) 1, pp. 39-67
-off between policy commitment—either unconditional or state-contingent—and discretion affects the optimal intertemporal design of … market-based instruments in the power sector. Using a dynamic partial equilibrium model, we show that commitment to a state …-contingent level of ambition for the market-based instrument leads to higher welfare than both unconditional commitment and discretion …