This paper develops an agent-based real options model, which is capable of analyzing the investment and disinvestment decisions of heterogeneous competing firms under consideration of tradable output permits. A permit market is integrated into the model in which the firms can trade permits with...

This paper uses transaction and index data to empirically examine price formation in, and equilibrium characteristics of, the primary CDM market. Results point to the preemptive behaviour among intermediaries (carbon firms), and inefficiencies in information transmission between secondary and...

To the extent that firms don't internalise the negative externalities oftheir CO2 emissions, government intervention is needed to curb globalwarming. We study the equilibrium interaction between firms, which caninvest in green technologies, and government, which can impose\ emissioncaps but has...