This paper develops a principal-agent model with adverse selection to analyse firms' decisions between an existing carbon-intensive technology and a new low-carbon technology requiring an externally funded initial investment. We find that a Pigouvian emission tax alone may result in credit...

This paper uses a theoretical model with Directed Technical Change to analyse the observed heterogeneous energy intensity developments. Based on the empirical evidence on the underlying drivers of energy intensity developments, we decompose changes in aggregate energy intensity into structural...

This paper uses a theoretical model with Directed Technical Change to analyse the observed heterogeneous energy intensity developments. Based on the empirical evidence on the underlying drivers of energy intensity developments, we decompose changes in aggregate energy intensity into structural...

This paper uses a model with Directed Technical Change to theoretically analyse observable heterogeneous energy intensity developments. Based on the empirical evidence, we decompose changes in aggregate energy intensity into structural changes in the economy (structural effect) and within-sector...

This paper offers a novel theoretical approach to analyse the impacts of emission externalities and credit market failures on low-carbon investments. We use a principal-agent model with information asymmetries between borrowing firms and lenders. Firms can choose between a carbon-intensive...

Across the globe climate policy is shifting away from a carbon price towards investment subsidies, such as grants, interest-subsidised loans or guarantees. This increases the risk of inefficient public spending. This paper shows how the main market imperfections related to the emission...

This paper provides an empirical investigation of severe misconducts in contests based on data from European football championships. We differentiate between two types of severe misconducts both resulting in a yellow card, namely dissents with the referee and other misconducts, and between...

This paper analyses the role of climate and environmental policy for the relationship between firms' environmental externalities and their cost of debt using data on European corporate bonds. For direct environmental costs as well as for carbon emissions, we find that policy is a key driver of...