Edenhofer, Ottmar; Lessmann, Kai; Tahri, Ibrahim - 2021
Climate policy needs to set incentives for actors who face imperfect, distorted markets and large uncertainties about … beta). We study carbon pricing and financial incentives in a consumption-based asset pricing model distorted by technology … financial incentives, implemented in our model by a regulator and by a long-term investment fund. The regulator commands carbon …