This paper argues for introducing the role of capital malleability into the analysis of environmental policies. The … outcomes reveal differences between results under separate assumptions regarding the malleability of capital. When capital is … imperfectly malleable a carbon policy is less effective than under the assumption of perfect malleability of capital. Therefore …

Since 1997 the Netherlands has a tax allowance scheme introduced to promote investments in energy saving technologies … and sustainable energy production. This Energy Investment Tax Allowance (EIA in Dutch) reduces up-front investment costs … is still part of the Dutch energy policy mix. Our evaluation of the EIA contains four lessons. First, the use of tax …

interactions associated with the movement of capital and polluting activities from one economy to another. We use a simple … dynamical model describing capital accumulation along the lines of a fixed-savings-ratio Solow-type model capable of producing … or regions. The basic mechanism underlying the movements of capital across space is the quest for locations where the …