adoption decision of particular technologies under uncertainty. These technologies are coal-fired power plants, biomassfired … policy ; uncertainty ; real options ; electricity ; investments …

Following the real option literature, whether or not uncertainty shocks drive business cycles depends on the degree of … adjustment frictions. The more plants freeze and remain inactive in response to increased uncertainty, the stronger the adverse … in uncertainty reduces hiring, quits and job creation, while it raises layoffs and job destruction. Our finding suggests …