René Aïd (Dauphine University)
Titre: Optimal dynamic regulation of carbon emissions market
Abstract:
We consider the problem of a regulator aiming at reducing the carbon emissions of a set of firms over a finite horizon. The instrument of the regulator is the dynamic allocation of emission allowances to each firm. Firms face idiosyncratic as well as common economic shocks on emissions, linear quadratic abatement cost and can trade allowances to achieve minimisation of total expected costs of abatement and trading and terminal Read more [...]
