Fell, Harrison; Holland, Stephen P.; Yates, Andrew J. - National Bureau of Economic Research - 2023
Green hydrogen may decarbonize sectors which are difficult to electrify, and the recent Inflation Reduction Act (IRA …) provides tax credits to encourage hydrogen production. We analyze a model in which hydrogen produced using electricity replaces … absence of Pigouvian taxation, optimal hydrogen subsidies are positive if the unpriced externality from avoided natural gas is …