in many place based policies. The optimal hiring subsidy is city specific in the sense that it depends upon the local …

factor prices and on environmental outcomes. We model an output subsidy, a capital subsidy, relief from environmental … regulation, and a direct cash subsidy. In exchange for receiving subsidies, firms must agree to a minimum level of labor … employment. Each type of subsidy and the employment constraint create both output effects and substitution effects on input …

of one policy response: linking subsidies to prices, to target a given post-subsidy premium. We show that these price …

productive use, the economy wide marginal product of emissions falls with an increase in any subsidy, tending to decrease …