We address one aspect of the treatment of technical change in the environmental economics literature: how technical change impacts the marginal cost of abatement. We review a selection of papers that employ a variety of representations of technical change, and show that these representations...

Using an optimal control model, we explore the reaction of a firm's optimal investment into an R&D program that aims at non-carbon technologies under uncertainties about a future carbon tax. We find; first, that the influence of risk on investment decisions depends on model formulation. Second,...