Pommeret, Aude; Prieur, Fabien - Fondazione ENI Enrico Mattei (FEEM) - 2009
The design of environmental policy typically takes place within a framework in which uncertainty over the future impact … cost of environmental degradation; the second is related to the sunk cost of environmental policy. Clearly, the two … solutions for both the optimal pollution level and the optimal environmental policy timing. Finally, the model is "calibrated …