, when a Pigouvian tax on conventional fuels such as crude is in place, the optimal biofuel subsidy is zero. When the tax on … crude is not available as a policy option, however, a second-best biofuel subsidy (or tax) is optimal. In the large …-country case, the optimal tax on crude departs from its standard Pigouvian level and a biofuel subsidy is optimal. A biofuel …

desirable and the usual profit-shifting objectives of an export subsidy are mitigated, perhaps completely, because it might lead …

immigration target there is a wage target (arising out of income distribution concerns), an outsourcing subsidy is required. The …