Environmental policy often has to be devised under informational constraints,like uncertainty and asymmetric information. We consider an environmentalpolicy that aims at reducing the welfare losses caused by asymmetricinformation while being sufficiently simple for implementation. Inthis policy,...

We present a duality concept for a class of stochastic dynamic optimization problems thatespecially includes models of investment under uncertainty. This concept allows us to deriveexplicit characterizations of optimal investment behavior from an adjustment cost model withexpectations described...

We consider an abstract setting of the differential r&d game, where participating firms are allowed for strategic behavior. We assume the information asymmetry across those firms and the government, which seeks to support newer technologies in a socially optimal manner. We develop a general...