We build a dynamic model in which home owners decide when and how to switch to carbon-neutral heating. Agents differ with regard to carbon intensity and abatement costs, the latter being private information which is non-observable by the government. The heating-related investment model is nested...

A growing number of studies apply the social‐ecological systems (SES) framework with its standardized set of variables to examine place‐based environmental governance. Yet, due to the wide diversity of social‐ecological systems, a general theory about how variables interact—and systems...

The aim of this project is to identify the investment requirements for energy infrastructure across each TEN-E infrastructure category, as well as for non-TEN-E electricity transmission and distribution infrastructure, in order to enable a decarbonised economy in the EU. It also evaluates the...

This paper analyzes the optimal level of public debt when taxes are used not only for funding public expenditures but also for correcting externalities from climate change. Taking into account externalities implies that the optimal policy deviates from tax smoothing. Provided cumulative marginal...

We study the effect of ambiguity on timing decisions. An agent faces a stopping problem with an uncertain stopping payoff and a stochastic time limit. The agent is unsure about the correct model quantifying the uncertainty and seeks to maximize her payoff guarantee over a set of plausible...

This paper analyzes the political economy of government debt when elected politicians decide about the distribution of public funds between a clean and a polluting public good. When provision of the polluting good creates a stock of climate externalities, strategic incentives for the incumbent...