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explain the effects of entry-year electricity prices on subsequent energy intensity. We discuss how this “technology lock …
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"Prices versus quantities" (Weitzman 1974), a hugely influential paper, is widely cited (and taught) in current debates about the best policy to reduce greenhouse gas emissions. The paper's criterion for ranking policies suggests that technological uncertainty favors taxes over cap and trade....
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(e.g. due to the introduction of emissions pricing) in terms of their output, product mix, and technology, and how their …
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