Fan, Xiaoshuai; Chen, Kanglin; Chen, Ying-Ju - 2021
's technology investment and production decisions.We show that under the cap-and-trade policy, with the uncertainty of the future … increase its technology investment to hedge against the future risk of a high emission price. Making a comparison between the … generates a multi-win situation (i.e., higher expected profit and consumer surplus, more technology investment, and less carbon …