Gren, Ing-Marie Gren; Elofsson, Katarina - Institutionen för ekonomi, Sveriges Lantbruksuniversitet - 2013
This paper applies the replacement cost method for calculating the value of stochastic carbon sequestration in the EU climate policy for mitigating carbon dioxide emissions. Minimum costs with and without carbon sequestrations are then derived with a safety-first approach in a chance-constrained...