This paper considers the performance of ambient environmental quality and emissions (effluent) policies in settings where the ability of the receiving environmental media to assimilate pollution is stochastic, for instance a river with variable streamflow. Our main findings are: (i) ambient...

The increase of the share of renewable energy in total energy production is a stated goal of environmental and industrial policy in many developed countries. Governments adopt regulation to support the investment into renewable energy infrastructure, in particular in power generation. Two main...

Emission allowances are often distributed for free in an early phase of a cap-and-trade scheme (grandfathering) to reduce adverse effects on the profitability of firms. If the grandfathering scheme is phased out over time, firms may nevertheless relocate to countries with a lower carbon price...