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I study the impact of subsidies for Plug-in hybrid vehicles (PHEV) on carbon emissions. I show that subsidizing innovations without considering consumer behavior can harm the environment. I provide descriptive evidence on charging instances of PHEV and combine it with a structural model of...
Persistent link: https://www.econbiz.de/10014334532
Technology policy is the most widespread form of climate policy and is often preferred over seemingly efficient carbon pricing. We propose a new explanation for this observation: gains that predominantly accrue to households with large capital assets and that influence majority decisions in...
Persistent link: https://www.econbiz.de/10014311913
model, where elections determine carbon taxation and green investment subsidies, and individuals make investments into … carbon taxation and energy generation completely relies on renewables in the latter case. Green investment subsidies can be … probability, we show that this party can also use investment subsidies strategically to influence the elections. The party that …
Persistent link: https://www.econbiz.de/10014486660
Persistent link: https://www.econbiz.de/10012581832
The green paradox conveys the idea that climate policies may have unintended side effects when taking into account the reaction of fossil fuel suppliers. In particular, carbon taxes that will be implemented in the future induce resource owners to extract more rapidly which increases present...
Persistent link: https://www.econbiz.de/10010429908
It is widely believed that an environmental tax (price regulation) and cap-and-trade (quantity regulation) are equally efficient in controlling pollution when there is no uncertainty. We show that this is not the case if some consumers (firms, local governments) are morally concerned about...
Persistent link: https://www.econbiz.de/10012500312
International carbon markets are frequently propagated as an efficient instrument for reducing CO2 emissions. We argue that such markets, despite their desirable efficiency properties, might not be in the best interest of governments who are guided by strategic considerations in negotiations. We...
Persistent link: https://www.econbiz.de/10012215277
An argument sometimes used to support renewable energy is that it may contribute to job creation. On the other hand, these technologies often face local opposition. On the case of Denmark, the country with the longest experience with wind power, the authors examine whether the installation of...
Persistent link: https://www.econbiz.de/10013460360
Drastic emission reductions are necessary to combat climate change. However, despite several climate policies, carbon emissions from German manufacturing have actually increased between 2005 and 2017. In this paper, we provide evidence of how the policy mix overall has affected the German...
Persistent link: https://www.econbiz.de/10013382489
Carbon emissions from German manufacturing have increased over the past decade, while carbon intensity (emissions per Euro of gross output) has declined only slightly. We decompose changes in emissions between 2005 and 2017 into scale, composition (changes in the mix of goods produced) and...
Persistent link: https://www.econbiz.de/10012485520