control policy is imperfect designed or implemented, its performance can be improved by an energy (output) tax/subsidy scheme …, where the subsidy is given only to renewable generators or for energy efficiency improvements. This combination can bring … needs to be applied globally to have its best effect and heterogeneous implementation (i.e. different levels of tax/subsidy …

spillovers and the intensity of competition. Consistently with the theory, we find that the probability of cooperation increases …