Risk-Averse Equilibrium Modeling and Social Optimality of Cap-and-Trade Mechanisms

2015 ◽  
pp. 261-269
Author(s):  
Paolo Falbo ◽  
Juri Hinz ◽  
Cristian Pelizzari
Keyword(s):  
Risk Averse ◽  
Cap And Trade ◽  
Equilibrium Modeling ◽  
Social Optimality

scholarly journals Optimal Decisions for Two Risk-Averse Competitive Manufacturers under the Cap-and-Trade Policy and Uncertain Demand

2020 ◽  
Vol 17 (3) ◽  
pp. 1010 ◽  
Author(s):  
Hongxia Sun ◽  
Jie Yang ◽  
Yang Zhong
Keyword(s):  
Decision Making ◽  
Carbon Emissions ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Reduction Rate ◽  
Risk Averse ◽  
Cap And Trade ◽  
Carbon Emission Reduction ◽  
Optimal Decisions ◽  
The Government

With the increasingly serious problem of environmental pollution, reducing carbon emissions has become an urgent task for all countries. The cap-and-trade (C&T) policy has gained international recognition and has been adopted by several countries. In this paper, considering the uncertainty of market demand, we discuss the carbon emission reduction and price policies of two risk-averse competitive manufacturers under the C&T policy. The two manufacturers have two competitive behaviors: simultaneous decision making and sequential decision making. Two models were constructed for these behaviors. The optimal decisions, carbon emission reduction rate, and price were obtained from these two models. Furthermore, in this paper the effects of some key parameters on the optimal decision are discussed, and some managerial insights are obtained. The results show that the lower the manufacturers’ risk aversion level is, the higher their carbon emission reduction rate and utilities. As the carbon quota increases, the manufacturers’ optimal carbon reduction rate and utilities increase. Considering consumers’ environmental awareness, it is more beneficial for the government to reduce the carbon quota and motivate manufacturers’ internal enthusiasm for emission reduction. The government can, through macro control of the market, make carbon trading prices increase appropriately and encourage manufacturers to reduce carbon emissions.

Life after Heart Transplantation

2002 ◽  
Vol 7 (4) ◽  
pp. 285-294 ◽  
Author(s):  
Lucia Savadori ◽  
Lorella Lotto ◽  
Rino Rumiati
Keyword(s):  
Heart Transplantation ◽  
Frame Of Reference ◽  
Physician Communication ◽  
Risk Averse ◽  
Medical Team ◽  
Perceived Knowledge ◽  
Surgical Technology ◽  
Postoperative Therapy ◽  
Life Expectation ◽  
Risk Judgments

Progress in surgical technology and in postoperative therapy has remarkably increased life expectation after heart transplantation. Nevertheless, patients still show a resistance to resume a normal life after transplantation, for example, to return to work. In this study we assume that after surgery patients become risk averse because they achieve a positive frame of reference. Because of this propensity toward risk aversion, they withhold from engaging in behavior that their physical condition would allow them in principle. Coherent with this assumption we found that compared to the medical team patients overestimate the degree of risk for routine activities. The study also showed that the representation of risk by the patients could be captured by a dreadfulness factor and a voluntariness factor. Patients' risk judgments were strongly and specifically predicted by the perceived degree of dreadfulness of the activity and, to a lesser extent, by the perceived knowledge of the consequences. Implications for patient-physician communication were explored.

Risk Attitude and Corporate Investment under Output Market Uncertainty: Evidence from The Mekong River Delta, Vietnam

2016 ◽  
pp. 59-70
Author(s):  
Ninh Le Khuong ◽  
Nghiem Le Tan ◽  
Tho Huynh Huu
Keyword(s):  
Negative Relationship ◽  
Risk Attitude ◽  
Business Strategies ◽  
Risk Averse ◽  
Market Uncertainty ◽  
Firm Investment ◽  
Output Market ◽  
The Impact ◽  
The Relationship

This paper aims to detect the impact of firm managers’ risk attitude on the relationship between the degree of output market uncertainty and firm investment. The findings show that there is a negative relationship between these two aspects for risk-averse managers while there is a positive relationship for risk-loving ones, since they have different utility functions. Based on the findings, this paper proposes recommendations for firm managers to take into account when making investment decisions and long-term business strategies as well.

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