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Transboundary externalities and reciprocal taxes : a differential game approach

Mason, Charles F. - 2017

I investigate the interaction between a country that imports a commodity whose production contributes to a stock pollution, such as electricity, from a country that produces that commodity. If the transboundary externality is priced improperly, the application of a feed-in tariff or border tax...

Persistent link: https://www.econbiz.de/10011674362

Risk-Taking in Dynamic Contests

Usvitskiy, Alexander - 2022

We investigate a process of decision-making in a multi-period winner-take-all contest, in which competing players simultaneously choose among actions with different levels of risk every period. Strategic risk-taking is analyzed in isolation from effort choices, and, according to expected utility...

Persistent link: https://www.econbiz.de/10014081228

Risk Aversion and Dynamic Games between Hydroelectric Operators Under Uncertainty

Abbassi, Abdessalem; Dakhlaoui, Ahlem; Tamini, Lota D. - 2014

hydroelectricity producers are risk averse and face demand uncertainty. In each type of market structure we analytically determine the … or storage depending on the relative abundance of water between different regions to smooth the effect of uncertainty on …

Persistent link: https://www.econbiz.de/10014144936

Do Increases in Environmental Risk Reduce Welfare? A Dynamic Game Perspective

Benchekroun, Hassan - 2013

We consider the effect of an increase in the risk from pollution. We show that in the case of a flow pollution, when the number of players is sufficiently large, the result of Bramoulle and Treich, showing that a marginal increase of risk in the neighborhood of a risk-free world is...

Persistent link: https://www.econbiz.de/10013081942

The rise and fall of the Great Fish Pact under endogenous risk of stock collapse

Walker, Adam N.; Weikard, Hans-Peter; Richter, Andries - 2015

Risk of stock collapse is a genuine motivation for cooperative fisheries management. We analyse the effect of an endogenously determined risk of stock collapse on the incentives to cooperate in a Great Fish War model. We establish that equilibrium harvest strategies are non-linear in stock and...

Persistent link: https://www.econbiz.de/10011287058

Riskiness, risk aversion, and risk sharing: cooperation in a dynamic insurance game

Laczó, Sarolta (contributor) - 2008

This paper examines how cooperation in an insurance game depends on risk preferences and the riskiness of income. It considers a dynamic game where commitment is limited, and characterizes the level of cooperation as measured by the reciprocal of the discount factor above which perfect risk...

Persistent link: https://www.econbiz.de/10003770693

Markov Distributional Equilibrium Dynamics in Games with Complementarities and No Aggregate Risk

Balbus, Lukasz - 2020

We present a new approach for studying equilibrium dynamics in a class of stochastic games with a continuum of players with private types and strategic complementarities. We introduce a suitable equilibrium concept, called Markov Stationary Distributional Equilibrium (MSDE), prove its existence,...

Persistent link: https://www.econbiz.de/10012829253

A Dynamic Game of Emissions Pollution with Uncertainty and Learning

Masoudi, Nahid - 2014

We introduce learning in a dynamic game of international pollution, with ecological uncertainty. We characterize and … ecological uncertainty but they gain information (learn) about it. We then compare our learning model with the benchmark model of … full information, where players know the distribution of ecological uncertainty. We find that uncertainty due to …

Persistent link: https://www.econbiz.de/10013050176

Stranded Assets, the Social Cost of Carbon, and Directed Technical Change : Macroeconomic Dynamics of Optimal Climate Policy

van der Ploeg, Rick - 2016

The tractable general equilibrium model developed by Golosov et al. (2014), GHKT for short, is modified to allow for stock-dependent fossil fuel extraction costs and partial exhaustion of fossil fuel reserves, a negative impact of global warming on growth, mean reversion in climate damages,...

Persistent link: https://www.econbiz.de/10012996198

Should Pollution Taxes Be Targeted at Income Redistribution?

Jacobs, Bas - 2017

This paper analyses optimal corrective taxation and optimal income redistribution. Under general utility functions, the Pigouvian pollution tax is higher if pollution damages disproportionally hurt the poor due to equity weighting of pollution damages. Moreover, optimal pollution taxes should be...

Persistent link: https://www.econbiz.de/10012948330