Heydari, Shahriar Shah; Vestergaard, Niels - 2015
/subsidy for various regions) makes welfare loss, but still adding a global emission control policy to a set of existing different … first best solution, i.e., a perfectly designed emission tax or emission cap level. It is shown that in the case an emission … control policy is imperfect designed or implemented, its performance can be improved by an energy (output) tax/subsidy scheme …