Jeddi, Samir; Lencz, Dominic; Wildgrube, Theresa - 2021
CCfDs and compare it to other carbon pricing regimes. In our model, a regulator can offer CCfDs to risk-averse firms that … decide upon irreversible investments into an emission-free technology in the presence of risk. Risk can originate from the … instrument as it hedges firms’ risk encouraging investments when the firms’ risk aversion would otherwise inhibit this. In …