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emissions if and only if they lower the marginal product of dirty energy. The constrained-efficient subsidy equals the marginal … this more optimistic scenario, a clean subsidy generates significantly higher emissions and lower welfare than a tax on …
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emissions if and only if they lower the marginal product of dirty energy. The constrained-efficient subsidy equals the marginal … this more optimistic scenario, a clean subsidy generates significantly higher emissions and lower welfare than a tax on …
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If bioenergy has a less negative impact on the climate than fossil energy, it may be optimal to have a significant increase in the use of bioenergy over time. Due to the difference in the way the climate is affected by the two types of energy, the future time path of the use of bioenergy may be...
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