Branger, Frédéric; Quirion, Philippe - Fondazione ENI Enrico Mattei (FEEM) - 2014
We develop a stochastic model to rank different policies (tax, fixed cap and relative cap) according to their expected total social costs. Three types of uncertainties are taken into account: uncertainty about abatement costs, business-as-usual (BAU) emissions and future economic output (the two...