In a continuous-time framework we study the technology and investment choice problem of a continuous co … flexible technology allowing for such option. Investment is irreversible and flexibility is costly. The problem is solved … determining in the light of future prospects the optimal revision and then playing backward fixing the investment timing rule …

firms' investment incentives, however. It is the purpose of the present article to study the impact of a cap and trade … mechanism on firms' investment and production decisions and to analyze the optimal design of emission trading systems in such an …