Capital Cycles and the Timing of Climate Change Policy

Foreword    ii

Executive Summary     iii

I. Introduction    1

II. The Literature on Capital Investment Patterns     4
        A. What is a Capital Cycle?     4
        B. Empirical Studies      6
        C. Economic Theory      9
        D. Practitioners' Literature      11

III. Firm Interviews      15
        A. Description of Interviews     15
        B. Findings from Interviews     17
        C. The Role of Uncertainty     33

IV. Findings    37

V. Policy Implications     41

VI. Conclusions     47

Endnotes     51

References     54

Appendix: Firm Questionnaire     57