total social costs. Three types of uncertainties are taken into account: uncertainty about abatement costs, business … marginal benefits and marginal costs, and the above-mentioned correlation, are crucial to determine which instrument is … caps. An intermediate condition is found to compare the tax instrument and the relative cap. The model is then empirically …

understand the intuition behind Real Option theory - the interplay between irreversibility and uncertainty. Many climate …

Uncertainty is an obstacle for commitments under cap and trade schemes for emission permits. We assess how well … cost of uncertainty and achieve significant increases in global abatement. The optimal degree of indexation to GDP would …, gains from reduced cost uncertainty and the potential for more stringent environmental commitments could justify the …

performance standards (averaging) emerge as the likely tool to achieve flexibility in the regulation of existing stationary … electricity price increase. Under the act, multiple stringency criteria are relevant. EPA should evaluate state implementation …

Authorities often lack information for efficient regulation of the commons. This paper derives a criterion comparing … prices versus tradable quantities in terms of expected welfare, given uncertainty, optimal policy and endogenous cost … structure. I show that one cannot determine which regulatory instrument that induces the highest expected welfare based on the …

Authorities often lack information for efficient regulation of the commons. This paper derives a criterion comparing … prices versus tradable quantities in terms of expected welfare, given uncertainty, optimal policy and endogenous cost … structure. I show that one cannot determine which regulatory instrument that induces the highest expected welfare based on the …

)’s result who, on the ground of Weitzman (1974)’s model, is in favor of a decentralized regulation at the sectorial or … regulation instead of entering a common framework crucially depends on the combination between firms’ heterogeneity in abatement … costs, size of the regulated sectors at the national level, as well as uncertainty on aggregate marginal abatement benefits …

through a trading scheme, stand in contrast to taxes being the preferable policy instrument. The present paper addresses, by …

, the simulations indicate that no matter how permits are allocated, this policy instrument can substantially reduce the …

price is motivated by political concerns regarding distributional effects of increased energy prices. Hence, carbon prices … subsidies, however, can achieve ambitious mitigation targets at moderate additional costs without leading to high energy price …