firms' investment incentives, however. It is the purpose of the present article to study the impact of a cap and trade … mechanism on firms' investment and production decisions and to analyze the optimal design of emission trading systems in such an …

distorts investment incentives, while competition mitigates them. The extent of improvement depends critically on demand … decreases the first-period price on the other side. Chapter 2 examines firms’ incentives to invest in local and flexible … between investment and correlation is positive, and if it is costly, the relationship becomes negative; under duopoly, the …

We analyze the effects of an incentive based regulatory scheme with revenue caps on the investment behaviors and …'s implementation of incentive regulation in 2009 has a negative impact on total investment, and that firms increase their investments … constraints used to determine the revenue caps influence the distribution companies' investment decisions. We also note that the …

-specific costs of capital. We show that SOEs did respond to the performance evaluation reform by altering their investment decisions … evidence that incentive schemes affect real investment and sheds new light on challenges faced by economic reforms in China …