Eichner, Thomas; Runkel, Marco - In: Journal of Public Economics 117 (2014) C, pp. 50-59
outflow to other countries. When the green subsidy is available, countries choose a positive subsidy rate since this reduces … the overall distortion of the tax–subsidy system. In doing so, each country internalizes a larger part of the …. Hence, the subsidy is not only beneficial for the country which imposes it but also for all countries. …