The control of carbon emissions by policymakers poses the new corporate challenge of developing an optimal carbon management strategy. We provide a unified model that characterizes how firms should optimally manage emissions through production, green investments, and carbon trading, as well as...

The control of carbon emissions by policymakers poses the corporate challenge of developing an optimal carbon management policy. We provide a unified model that characterizes how firms should optimally manage emissions through production, green investment, and the trading of carbon credits. We...