A small but growing body of literature uses overlapping generations (OLG) models to study environmental policy for long-lived problems such as climate change. An OLG model, unlike the infinitely lived representative agent model, distinguishes between impatience with respect to one’s own future utility, and attitudes toward successors’ utility. I discuss the problem of time inconsistency, the ro...

Wit o t p ve w e reso an g e h p o ress p er u io t t h M len iu e lo m t al , an su t in le ev p e t a e o o ic, so n en iro t d en n , ill e j p ized Without improved water resources management, the progress towards poverty reduction targets, the Millennium Development Goals, and sustainable development in all its economic, social and environmental dimensions, will be jeopardized. Adaptation ...

The choice of an overall discount rate for climate change investments depends critically on how di¤erent components of investment payo¤s are discounted at di¤ering rates re‡ecting their underlying risk characteristics. Such underlying rates can vary enormously, from 1% for idiosyncratic diversi…able risk to 7% for systemic nondiversi…able risk. Which risk-adjusted rate is chosen can have a huge...

Data on certainty equivalent discount factors and discount rates for stochastic interest rates in Australia are provided in this paper. The data has been used for the analysis of investments into climate adaptation projects in ׳It׳s not now or never: Implications of investment timing and risk aversion on climate adaptation to extreme events׳ (Truong and Trück, 2016) [3] and can be used for othe...

During recent climate warming, some species have expanded their ranges northwards to keep track of climate changes. Evolutionary changes in dispersal have been demonstrated in these expanding populations and here we show that increased dispersal is associated with reduced investment in reproduction in populations of the speckled wood butterfly, Pararge aegeria. Evolutionary changes in flight ve...

Involuntary culling (IC) is where a cow is disposed of due to injury, poor health or infertility. The main reasons for IC are infertility, mastitis and lameness. These reasons have differing age profiles in when they affect cows, cost variable amounts to treat and have an effect on the value of the cow at market. They also reduce cow welfare in different ways. These factors influence the econom...

Climate policy proposals based on cap and trade mechanisms with tight caps will likely lead to highly volatile CO2 prices. This volatility is ignored in many studies, even though it can be expected to exceed that of natural gas and to exceed the wide ranges in CO2 price forecasts. Volatility will significantly increase investment risk, raise the cost of capital, and make it valuable to defer in...

Motivation Policies to promote solar photovoltaic (PV) adoption have been gaining momentum throughout the world, as concerns over global climate change and national security externalities continue to grow. In the US: 30% solar energy federal investment tax credit. Yet we understand very little about the process of diffusion of this technology.

The purpose of the research is to examine the role of innovation capital in the creation of value for business organizations. Taking an intellectual capital (IC) perspective, the paper considers R&D investment and its impacts on the companies’ operating, financial, and market performance. To investigate the different components of intellectual capital using financial measures, a modified Value ...

Global climate change presents a classic problem of decision making under uncertainty with learning. We provide stochastic dominance theorems that provide new insights into when abatement and investment into low carbon technology should increase in risk. We show that R&D into low-carbon technologies and near-term abatement are in some sense opposites in terms of risk. Abatement provides insuran...