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dc.contributor.authorALBRIZIO, Silvia
dc.contributor.authorCOSTA, Hélia
dc.date.accessioned2012-12-14T11:38:02Z
dc.date.available2012-12-14T11:38:02Z
dc.date.issued2012
dc.identifier.issn1725-6704
dc.identifier.urihttps://hdl.handle.net/1814/24914
dc.description.abstractIn the context of an emission trading scheme (ETS), we study how uncertainty over the environmental policy affectsfirms' investment in low-carbon technologies. We develop a three period sequential model that combines the industry and the electricity sectors and encompasses both irreversible and reversible investment possibilities for the firms. Additionally, we explicitly model the policy uncertainty in the regulator's objective function as well as the market interactions that give rise to an endogenous price of permits. We find that uncertainty reduces irreversible investment and that the availability of both reversible and irreversible technologies partially eliminates the positive effect of policy uncertainty on reversible technology found in previous literature. Furthermore, we provide a framework that allows to assess the efficiency of different implementations of the scheme.en
dc.format.mimetypeapplication/pdf
dc.language.isoenen
dc.relation.ispartofseriesEUI ECOen
dc.relation.ispartofseries2012/27en
dc.rightsinfo:eu-repo/semantics/openAccess
dc.subjectD78en
dc.subjectD80en
dc.subjectL51en
dc.subjectQ58en
dc.subjectEmission Trading Schemeen
dc.subjectLow-carbon investmenten
dc.subjectPolicy uncertaintyen
dc.subjectMechanism designen
dc.subjectIrreversible and reversible investmenten
dc.titlePolicy Uncertainty and Investment in Low-Carbon Technologyen
dc.typeWorking Paperen
dc.neeo.contributorALBRIZIO|Silvia|aut|
dc.neeo.contributorCOSTA|Hélia|aut|
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