Non-strategic firms with rational expectations make investment and emissions decisions. The investment rule depends on … taxes create a secondary distortion at the investment stage, unless a particular condition holds; emissions quotas do not …

Non-strategic firms with rational expectations make investment and emissions decisions. The investment rule depends on … taxes create a secondary distortion at the investment stage, unless a particular condition holds; emissions quotas do not …

Non-strategic firms with rational expectations make investment and emissions decisions. The investment rule depends on … taxes create a secondary distortion at the investment stage, unless a particular condition holds; emissions quotas do not …

mixed and pure strategies at the participation stage, and including a prior cost-reducing investment stage. The use of mixed … mixed strategies, equilibriumparticipation and welfare is higher in equilibria that involve higher investment. …