This paper argues for introducing the role of capital malleability into the analysis of environmental policies. The …. Considering the three approaches together is fundamental in obtaining theory-compatible policy-relevant results. The model … outcomes reveal differences between results under separate assumptions regarding the malleability of capital. When capital is …

A framework is developed with what we call technology capital. A country is a measure of locations. Absent policy … constraints, a firm owning a unit of technology capital can produce the composite output good using the unit of technology capital … is what constrains the number of units it operates using this unit of technology capital. If it has two units of …

monotonic with respect to the price of investment. Indeed, taxing capital may induce the farmer to increase the total level of … related to the level of investment in irrigation capacity and the other one to the irrigation level in each period. In the … period. Assuming a CARA utility function, we show that taxing the investment may entail an increase in preventive irrigation …