This paper explores abatement investment and location responses to environmental policy, which takes the form of emission taxes or tradeable emission permits and subsidies against the costs of abatement investment, under uncertainty and irreversibility. Uncertainty is associated with output...

Climate Engineering, and in particular Solar Radiation Management (SRM) has become a widely discussed climate policy option to study in recent years. However, its potentially strategic nature and unforeseen side effects provide major policy and scientific challenges. We study the role of the SRM...

We propose a new class of utility functionals for decision making under uncertainty and ambiguity aversion, the class of Frechet mean preferences. Using a specific metrization of the space of probability measures in terms of the Monge-Wasserstein-Kantorovich metric, we derive explicit...