We estimate hurdle rates for firms’ investments in pollution abatement technology, using ex post data. The method is based on a structural option value model where the future price of polluting fuel is themajor source of uncertainty facing the firm. The empirical procedure is illustrated using...

This analysis utilises a model of production under risk estimated on Finnish farm-level data to measure farmers’ risk attitudes in a changing policy environment. We find evidence of heterogeneous risk preferences among farmers, as well as notable changes over time in farmers’...