Policymaker’s preferred investment in year 0 versus firm’s optimal investment under time-inconsistent DDR.
| Abatement level (tons CO2) | Valued at SCC in year 0 ($224.05/ton) | |
|---|---|---|
| Preferred by policymaker | 3, 176.64 | $711, 725.64 |
| Firm’s optimal | 2, 839.55 | $636, 202.11 |
| Difference | 337.09 | $75, 523.53 |
| Abatement level (tons CO2) | Valued at SCC in year 0 ($224.05/ton) | |
|---|---|---|
| Preferred by policymaker | 3, 176.64 | $711, 725.64 |
| Firm’s optimal | 2, 839.55 | $636, 202.11 |
| Difference | 337.09 | $75, 523.53 |
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