Natural capital should be preserved because it exhibits features that distinguish it from all other kinds of capital. The notorious prevalence of risk, uncertainty and ignorance makes it difficult, however, to state which parts of it should be preserved. Some forms of natural capital are more...

We survey the theoretical and empirical literature on decentralization within firms. We first discuss how the concept of incomplete contracts shapes our views about the organization of decision-making within firms. We then overview the empirical evidence on the determinants of decentralization...

The environmental integrity of a mechanism rewarding Reduced Emissions from Deforestation and Degradation (REDD) depends on appropriate accounting for emission reductions. Largely stemming from a lack of forest data in developing countries, emission reductions accounting contains substantial...

This paper analyses the design of carbon markets in space (i.e., geographically). It is part of a twin set of papers that, starting from first principles, ask what an optimal global carbon market would look like by around 2030. Our focus is on firm-level cap-and-trade systems, although much of...

This paper analyses the design of carbon markets in time (i.e., intertemporally). It is part of a twin set of papers that ask, starting from first principles, what an optimal global carbon market would look like by around 2030. Our focus is on firm-level cap-and-trade systems, although much of...

This paper explores the sources of uncertainty that cause firms to revise their capital investment plans and the stock market to revise its valuation of those firms. A simple method is developed to decompose the uncertainty governing revisions in investment plans and the stock market rate of...