We revisit optimal investment in energy-efficiency, presenting a decision framework built around the agent's wealth and wealth dynamic. An investment rule in the form of a trigger is derived such that the agent invests the first time the energy-carrier price crosses this threshold from below....

Air pollution is a grave problem in urban areas of developing countries, with the transport sector being one of the largest contributors to emissions. A possibility to reduce carbon dioxide emissions would be for individuals to switch to more fuel-efficient vehicles. However, a gamut of...

Air pollution is a grave problem in urban areas of developing countries, with the transport sector being one of the largest contributors to emissions. A possibility to reduce carbon dioxide emissions would be for individuals to switch to more fuel-efficient vehicles. However, a gamut of...

The economic models that prescribe Pigovian taxation as the first-best means of reducing energy-related externalities and argue that taxes are superior to energy efficiency standards are typically based on the neoclassical model of rational consumer choice. Yet, observed consumer behavior with...