Parameters for baseline simulation.
| Parameter | Value |
|---|---|
| Total emissions, T | 2.5 |
| Standard, s | 2.0 |
| Abatement cost function parameter, w | 18.0 |
| Penalty for violation, γ | 3.0 |
| Fixed inspection cost, α | 0.5 |
| Discount rate, δ | 0.9 |
| Standard deviation of the error term, σ | 0.45 |
| Parameter | Value |
|---|---|
| Total emissions, | 2.5 |
| Standard, | 2.0 |
| Abatement cost function parameter, | 18.0 |
| Penalty for violation, | 3.0 |
| Fixed inspection cost, | 0.5 |
| Discount rate, | 0.9 |
| Standard deviation of the error term, | 0.45 |
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