Essays in Energy and Environmental Economics

This dissertation represents an effort to advance interdisciplinary research in issues relevant for energy and environmental policy, combining economics with applied engineering and ecology. It includes work that is informed by theoretical and empirical studies, and is conceptually centered in the notion that competitive markets lead to inefficient combinations of risk and yield. In the first two chapters of the dissertation, I study this in the context of wind energy capacity investments, where profit-maximizing developers choose the location and timing of the construction of wind farms. The final chapter of the dissertation is an empirical study on the effects of intensive aquaculture on water pollution