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We analyze investment decisions when information is costly, with and without delegation to an agent. We use a rational-inattention model and compare it with a canonical signal-extraction model. We identify three "investment conditions". In "sour" conditions, no information is acquired and no...
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This study investigates the role of technological innovation in increasing the effectiveness of the Kyoto Protocol in … as a measure of innovation are obtained from 54 countries for the period 1990-2015 to verify whether technological … innovation is effective in reducing GHG emissions and whether it has a significant synergetic relationship with the Kyoto …
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important differences between Japanese and US energy firms: lower elasticity of the innovation production function in R …&D expenditure, lower probability of radical innovation, and predominance of dirty technologies in Japan. This may explain our …
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We show that, in a model without commitment to future policies, geoengineering breakthroughs can have adverse environmental and welfare effects because they change the (equilibrium) carbon taxes. In our model, energy producers emit carbon, which creates a negative environmental externality, and...
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-gas emitting systems, such as inertia, induced innovation, and pathdependency, by formulating a compact and analytically tractable …
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