This workshop is intended for researchers and doctoral students in economics who are interested in resource and environmental economics. The webinar is led by a team of researchers composed of Geir B. Asheim (Oslo University), Hassan Benchekroun (McGill University), Sophie Bernard (Polytechnique Montréal), Etienne Billette de Villemeur (Université de Lille, UQAM), Robert Cairns (McGill University), Justin Leroux (HEC Montréal), and Charles Séguin (UQAM).
This workshop on natural resource and environmental economics will host Alexandre Pavlov, student at Université de Montréal, and Nicolas Pinsonneault, student at HEC Montréal.
→ This event will be in English.
- Alexandre Pavlov (Université de Montréal)
Abstract to be published soon
- Nicolas Pinsonneault (HEC Montréal)
Carbon Contracts for Difference and Climate Policy Uncertainty
Abstract
This paper investigates the role of Carbon Contracts for Difference (CCfDs) in mitigating the hold-up problem, wherein firms delay investments in emissions reduction due to policy uncertainty. Using a theoretical framework, we analyze the impact of CCfDs on firm decision-making and their effectiveness in aligning private investment with policy objectives. Our results identify the conditions under which CCfDs facilitate efficient abatement strategies and optimal production decisions, thereby mitigating the adverse effects of policy uncertainty on investment.