To protect environment need manufacturers to improve pollution abatement technology, and technology adoption is the effective means for achieving the purpose. Using real option theory and dynamic program method, this paper focuses on the research of the optimal timing of firms to adopt new pollution abatement technology under tradable emissions permits. It is assumed that in the process of new pollution abatement adoption, the manufacturers face two kinds of uncertain factors that are the speed new technology appearing and new technology innovation level. The results show that the optimal adop...
