Data/hora: 09/06/2024 10:48:53

Provedor de dados: 	31	
País: 	United States	
Título: 	Double Irreversibility and Environmental Policy Design	
Autores: 	Pommeret,   Aude; Prieur,   Fabien.	
Data: 	2009-05-27	
Ano: 	2009	
Palavras-chave: 	Environmental Policy; Environmental Irreversibility; Policy Irreversibility; Environmental Economics and Policy; Q58; D81.	
Resumo: 	The design of environmental policy typically takes place within a framework in which uncertainty over the future impact of pollution and two different kinds of irreversibilities interact. The first kind of irreversibility concerns the sunk cost of environmental degradation; the second is related to the sunk cost of environmental policy. Clearly, the two irreversibilities pull in opposite directions: policy irreversibility leads to more pollution and a less/later policy while environmental irreversibility generates less pollution and a more/sooner policy. Using a real option approach and an infinite time horizon model, this paper considers both irreversibilities simultaneously. The model first is developed by paying particular attention to the option values related to pollution and policy adoption. Solving the model in closed form then provides solutions for both the optimal pollution level and the optimal environmental policy timing. Finally, the model is "calibrated" with the purpose of appraising which irreversibility has the prevailing effect and what is the overall impact of both irreversibilities on pollution and policy design.	
Tipo: 	Working or Discussion Paper	
Idioma: 	Inglês	
Identificador: 	http://purl.umn.edu/50359	
Relação: 	Fondazione Eni Enrico Mattei (FEEM)&gt;Sustainable Development Papers

SD

10.2009	
Formato: 	21