Assume a polluting firm is risk averse and not sufficiently wealthy to cover the damage in case
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Assume a polluting firm is risk averse and not sufficiently wealthy to cover the damage in case of an accident (i.e. y−a*−D<0). Set up the firm’s objective function and the first-order condition for the optimal care level.
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Related Book For
A Course In Environmental Economics
ISBN: 9781316866818
1st Edition
Authors: Daniel J Phaneuf, Till Requate
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