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Three Essays In Environmental Economics, Ryan Swartzentruber

Doctoral Dissertations

The first chapter of this dissertation analyzes how policy uncertainty affects electric utility investment rates. Policy can either positively or negatively impact firm profits, as seen in the difference between subsidies and taxes. Using a real option theoretical model, I show how uncertainty over these two types of policies can have positive or negative impacts on investment rates. Empirical results using investment data for electric utilities provide evidence in support of differential effects of uncertainty. I find a positive effect of policy uncertainty on electric utility investment rates using my preferred measure of policy uncertainty. This suggests that policies applicable …