This dissertation treats the topic of environmentally unfriendly consumption behaviour in relation to air pollution and the use of automobiles in Mexico City by analyzing three related aspects: i) relevant factors of driving patterns, ii) differences in the extent of pollution arising from...

Consumers often purchase more than one differentiated product, assembling a portfolio, which might potentially affect substitution patterns of demand and, as a consequence, oligopolistic firms’ pricing strategies. To study such consumers’ portfolio considerations, this paper...

In this paper we present a continuous time model with reversible abatement capital in order to analyze the effects of environmental policies on the value of the firm and investment decisions. We show that the effects depend on what sort of future policy are implemented. We focus on investment...