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To decarbonize the power sector policy-makers need to commit to long-term credible rules for climate and energy policy. Otherwise, time-inconsistent policy-making will impair investments into low-carbon technologies. However, the future benefits and costs of decarbonization are subject to...
Persistent link: https://www.econbiz.de/10011611130
Industrial policy has long been criticized as subject to protectionist interests; accordingly, subsidies to domestic producers face disciplines under World Trade Organization agreements, without exceptions for environmental purposes. Now green industrial policy is gaining popularity as...
Persistent link: https://www.econbiz.de/10011457653
of sites suitable for RE. We find that the optimal RE subsidy is differentiated according to productivity and derive a …
Persistent link: https://www.econbiz.de/10012317289
Persistent link: https://www.econbiz.de/10012165727
We study the spatial misallocation resulting from subsidies for residential solar panels in the US and quantify the associated environmental costs. We build a structural model of solar panel demand and electricity production across the country and estimate the model by combining 1) remotely...
Persistent link: https://www.econbiz.de/10014284675
setting of imperfect competition is more appropriate. We show that the second best output subsidy for learning by doing in … insignificantly impacted by market power. By contrast, the welfare gains from an optimal subsidy are considerably higher compared to a …
Persistent link: https://www.econbiz.de/10013037927
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 for all countries …
Persistent link: https://www.econbiz.de/10013069215
limit. Because the change in production when the subsidy ends is a sufficient statistic for the optimal duration, we … by 5-10% when the ten-year subsidy ends, demonstrating that time limits distort production even in inelastic industries …
Persistent link: https://www.econbiz.de/10014358514
Persistent link: https://www.econbiz.de/10015145340
setting of imperfect competition is more appropriate. We show that the second best output subsidy for learning by doing in … insignificantly impacted by market power. By contrast, the welfare gains from an optimal subsidy are considerably higher compared to a …
Persistent link: https://www.econbiz.de/10009427861