| Budget Amount *help |
¥4,160,000 (Direct Cost: ¥3,200,000、Indirect Cost: ¥960,000)
Fiscal Year 2017: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000)
Fiscal Year 2016: ¥1,430,000 (Direct Cost: ¥1,100,000、Indirect Cost: ¥330,000)
Fiscal Year 2015: ¥1,560,000 (Direct Cost: ¥1,200,000、Indirect Cost: ¥360,000)
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| Outline of Final Research Achievements |
This research project investigates pollution reduction policies and firm's capital investment strategies under ambiguity. These researches show that the optimal pollution reduction policy which maximizes social welfare and the optimal capital investment strategy which maximizes the profit. In environmental policy, the ambiguity reduces consumption and encourages investment in production and pollutant reduction capitals. Overall, the ambiguity reduces social welfare. In firm's capital investment, this research project considers the quadratic adjustment cost and the case in which the capital is expanded and/or reduced as needed. The research finds the higher degree of ambiguity-aversion postpones the capital investment.
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