This paper examines the investment incentives of market-based regulation, with focus on the technology characteristics … aggregate emission allowance supply is completely inelastic. Further, in the presence of uncertainty, elastic emission allowance … supply and strictly convex environmental damage, it is optimal to tax investment in technologies that induce large variance …

This paper examines the investment incentives of market-based regulation, with focus on the technology characteristics … aggregate emission allowance supply is completely inelastic. Further, in the presence of uncertainty, elastic emission allowance … supply and strictly convex environmental damage, it is optimal to tax investment in technologies that induce large variance …

prices versus tradable quantities in terms of expected welfare, given uncertainty, optimal policy and endogenous cost …Authorities often lack information for efficient regulation of the commons. This paper derives a criterion comparing … structure. I show that one cannot determine which regulatory instrument that induces the highest expected welfare based on the …

prices versus tradable quantities in terms of expected welfare, given uncertainty, optimal policy and endogenous cost …Authorities often lack information for efficient regulation of the commons. This paper derives a criterion comparing … structure. I show that one cannot determine which regulatory instrument that induces the highest expected welfare based on the …

prices versus tradable quantities in terms of expected welfare, given uncertainty, optimal policy and endogenous cost …Authorities often lack information for efficient regulation of the commons. This paper derives a criterion comparing … structure. I show that one cannot determine which regulatory instrument that induces the highest expected welfare based on the …

prices versus tradable quantities in terms of expected welfare, given uncertainty, optimal policy and endogenous cost …Authorities often lack information for efficient regulation of the commons. This paper derives a criterion comparing … structure. I show that one cannot determine which regulatory instrument that induces the highest expected welfare based on the …

prices versus tradable quantities in terms of expected welfare, given uncertainty, optimal policy and endogenous cost …Authorities often lack information for efficient regulation of the commons. This paper derives a criterion comparing … structure. I show that one cannot determine which regulatory instrument that induces the highest expected welfare based on the …

Environmental policy often has to be devised under informational constraints, like uncertainty and asymmetric … information. We consider an environmental policy that aims at reducing the welfare losses caused by asymmetric information while …