Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92808
Authors: 
Asano, Takao
Year of Publication: 
2005
Series/Report no.: 
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 643
Abstract: 
In this paper, we consider a problem in environmental policy design by applying optimal stopping rules. The purpose of this paper is to analyze the optimal timings at which the government should adopt environmental policies to deal with increases in greenhouse gas concentrations and to reduce emissions of SO2 or CO2 under the continuous-time Knightian uncertainty. Furthermore, we analyze the effects of increases in Knightian uncertainty on optimal environmental policies and the reservation value.
Subjects: 
Knightian Uncertainty
Environmental Policy
Irreversibilities
JEL: 
D81
H23
L51
Q23
Document Type: 
Working Paper

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