three instruments: an allowance system (tradable green certificates), a subsidy system (feed-in tariffs) and a Pigouvian …

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 …

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 …

subsidy equals the marginal external cost of dirty energy multiplied by the marginal impact of clean energy production on … scenario, a clean energy production subsidy generates significantly higher emissions and lower welfare than a tax on dirty …