KAMA, ALAIN AYONG LE; POMMERET, AUDE; PRIEUR, FABIEN - In: Journal of Public Economic Theory 16 (2014) 6, pp. 959-980
We consider an optimal consumption and pollution problem that has two important features. Environmental damages due to economic activities may be irreversible and the level at which the degradation becomes irreversible is unknown. Particular attention is paid to the situation where agents are...