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The interest shown by policy makers and economists in the precautionary principle indicates the importance of model uncertainty in global warming policy. I show that through robust control, policy makers can implement the precautionary principle to regulate a stock pollutant, and I analyze its...
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This paper analyzes incentives for polluting firms to exchange abatement cost information under the non … information as well as commit themselves with respect to their abatement decisions. As a result, the differential tax triggers …
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We develop a dynamic regulation game for a stock externality under asymmetric information and future market uncertainty …-consistent policy rules that implement the stochastic first best as long as a future market exists. We apply our theory to carbon …
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