Monthly Archives: January 2018

Competition between renewable and traditional power producers: how spot market design influences the emergence of strategic investments in renewable capacity

We introduce a theoretical framework for the analysis of competition between a traditional and a renewable generator in a spot electricity market where the electricity from renewable sources is always the first to be dispatched.

Is fair value accounting short-term approach? The views of respondents to the Green Paper on the financing of long-term investment

This article seeks to investigate whether the fair value accounting may have short-termist bias on the financing of long-term investment.

Carbon Pricing and Global Warming: A Stock-flow Consistent Macro-dynamic Approach

To what extent can a worldwide carbon pricing foster the transition towards a low-carbon economy and help mitigate the effects of global warming? We address this question using a stock-flow consistent, financial and non-linear macrodynamics with uncertainty, calibrated for the world economy

Time-consistent stopping under decreasing impatience

Under non-exponential discounting, we develop a dynamic theory for stopping problems in continuous time. Our framework covers discount functions that induce decreasing impatience. Due to the inherent time inconsistency, we look for equilibrium stopping policies, formulated as fixed points of an operator. Under appropriate conditions, fixed-point iterations converge to equilibrium stopping policies.