On reducing the windfall profits in environmental subsidy programs
Investment subsidies are widely used to induce adoption of new technologies that can lower the (marginal) cost of reducing emissions. To economize on these subsidies, governments would like to distinguish between firms that need to receive a subsidy to adopt a new technology, and firms that would adopt that technology even without subsidies. We show that policies consisting of a menu of emission taxes and investment subsidies can potentially induce firms to self-select.
Year of publication: |
2009
|
---|---|
Authors: | Arguedas, Carmen ; Soest, Daan P. van |
Published in: |
Journal of Environmental Economics and Management. - Elsevier, ISSN 0095-0696. - Vol. 58.2009, 2, p. 192-205
|
Publisher: |
Elsevier |
Keywords: | Investment subsidies Environmental policy Abatement technology adoption Asymmetric information |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
On reducing the windfall profits in environmental subsidy programs
Arguedas, Carmen, (2009)
-
Optimal conservation programs, asymmetric information and the role of fixed costs
Arguedas, Carmen, (2011)
-
Environmental uncertainty and irreversible investments in abatement technology
Dijkstra, Bouwe R., (2001)
- More ...