Edenhofer, Ottmar; Lessmann, Kai; Tahri, Ibrahim - 2021
spillover and timeinconsistency. We find that both distortions reduce the equilibrium asset return and delay investment in … financial incentives, implemented in our model by a regulator and by a long-term investment fund. The regulator commands carbon … pricing and the fund provides subsidies to reduce technology costs or to boost investment returns. The investment subsidy …