Boffa, Federico; Clò, Stefano; D'Amato, Alessio - Dipartimento del Tesoro, Ministero dell'Economia e … - 2013
We compare a carbon tax and a cap and trade mechanism in their propensity to induce carbon-reducing technological adoption, when investments are undertaken under uncertainty. In our setting, risk-neutral firms affect the variance and the correlation of the shocks they are exposed to through...
