The Environmental and Natural Resource Economics Workshop is supported by the Centre interuniversitaire de recherche en analyse des organisations (CIRANO), the Centre interuniversitaire de recherche en économie quantitative (CIREQ), the Réseau de recherche en économie circulaire du Québec (RRECQ) and the Fonds de recherche du Québec (FRQ).
This workshop is intended for researchers and doctoral students in economics who are interested in resource and environmental economics.
The workshop will be 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).
* Information on previous workshops can be found here.
Workshop Venue
1130, rue Sherbrooke Ouest, suite 1400
Montréal, QC H3A 2M8
Speakers
Alexandre Pavlov (Université de Montréal & CIREQ), Endogenous Idiosyncratic Climate Risk
Abstract: According to climate science, extreme weather events are random and the underlying probability of their occurrence and severity is affected by human activity, namely emissions of greenhouse gases. However, most economic analysis of climate change abstracts from this form of “stochastic externality”. This study uses a theoretical framework wherein current emissions affect the parameters of the distribution of climate shocks in future periods in order to derive the optimal carbon tax taking into account this stochastic externality.
Biography: Alexandre Pavlov is a PhD candidate in economics at the University of Montréal whose research focuses on macroeconomics and environmental economics.
Nicolas Pinsonneault (HÉC 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.
