This paper empirically studies how emission pricing affects capital replacement and adoption of embodied environmental technology. A pricing policy encourages firms to accelerate retirement of old capital assets and replace them with newer more efficient assets, but this may crowd out...

The fight against climate change is one of the significant challenges of the 21st century. The European Union's environmental policy has evolved as the perception of the problem has become more evident. This paper examines the environmental commitments made by the European Union on the global...