high availability. Moreover, the subsidy scheme is substantially more complex than a first-best Pigouvian tax. The optimal … renewable subsidy is always positive but tends to decrease as electricity production becomes less reliant on fossils. The … optimal storage subsidy even changes its sign. It is usually negative as long as fossils contribute to filling the storage …

high availability. Moreover, the subsidy scheme is substantially more complex than a first-best Pigouvian tax. The optimal … renewable subsidy is always positive but tends to decrease as electricity production becomes less reliant on fossils. The … optimal storage subsidy even changes its sign. It is usually negative as long as fossils contribute to filling the storage …

-best policy consists of an aggressive renewables subsidy in the near term and a gradually rising and falling carbon tax. Given … that global carbon taxes remain elusive, policy makers have to use a second-best subsidy. In case of credible commitment …, the second-best subsidy is set higher than the social benefit of learning. It allows the transition time and peak warming …