exploit a natural experiment in which wind farm developers could choose an investment or an output subsidy to estimate the … farms claiming the investment subsidy produced 10 to 12 percent less power than wind farms claiming the output subsidy, and … that this effect reflects subsidy incentives rather than selection. Introducing investment subsidies caused the Federal …

-efficient durables (and thus may increase the inframarginal take-up of a subsequent subsidy), while other consumers may locate at the … lower bound of a minimum efficiency standard (and a given subsidy may be insufficient to change their investment toward a …