Chen, Wei; Chen, Jing; Ma, Yongkai - In: Financial innovation : FIN 8 (2022), pp. 1-28
This paper explores the incentives of investment in renewable energy of two utility firms who compete or cooperate under either a cap-and-trade grandfathering mechanism (GM) or benchmarking mechanism (BM). We find that utility firms will invest in renewable energy more under BM than under GM, in...