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 …

This paper argues for introducing the role of capital malleability into the analysis of environmental policies. The … outcomes reveal differences between results under separate assumptions regarding the malleability of capital. When capital is … imperfectly malleable a carbon policy is less effective than under the assumption of perfect malleability of capital. Therefore …