This paper examines optimal enviromental policy when external financing is costly for firms. We introduce emission externalities and industry equilibrium in the Holmström and Tirole (1997) model of corporate finance. While a cap-and-trading system optimally governs both firms` abatement...

Environmental policy instruments have an impact on the incentives to invest in environmental R&D and this link should deserve careful consideration when introducing new instruments. Some authors argue that evironmental taxes and tradable permits have rather comparable impacts on environmental...

This draft PhD thesis analyzes four issues in the research field that consists of the intersection of environmental economics, uncertainty, and decision-making. 1. Economic investments that lead to environmental damages beyond repair - like cutting rainforests or emitting pollutants with long...

Over the past three decades, the study of environmental and resource economics has evolved from a relatively obscure application of welfare economics to a field of economics in its own right, combining elements from industrial organization, public finance, microeconomic theory, and many other...

The products and the variety of direct and indirect benefits that humans receive from nature and the various ecosystems (agricultural, forest, grass, mountain, river, marine, etc.) are commonly known as ecosystem services. Agricultural ecosystems of different types and their specific...

The performance of market based environmental regulation is affected by patents and vice versa. This interaction is studied for a new type of innovation where new technologies reduce emissions of a specific pollutant but at the same time cause a new type of damage. A robust finding is that the...

This research investigates eco-clusters as driver for greening regional economic policy and examines necessary incentive structures to foster eco-innovation as well as growth and employment in the eco-industry sector. Eco-clusters are seen in context with sustainability and environmental...