Fukunari Kimura argued that the interest rate changes might not necessarily be caused by environmental concerns but rather by changes in the general investment policy. For instance, it is seen that interest rates came down after the two oil crisis in the 1970s. He also noted that pollution control agreements (PCAs) might take some time to work, which could be why the authors fail to find an effect. Others agreed and noted the discrepancy between the econometric results and what seems to be the conclusion from previous case studies.

Gihoon Hong wanted to see more of a discussion on the different channels and their behavioral impact. Hong also asked about the incentives to participate in the PCA, which was voluntary.

Bhanupong Nidhiprabha suggested an alternative approach with more of a comparison of the situation before and after the implementation of various regimes and regulations.

Prema-chandra Authokorala made a historical exposé...

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