This policy note investigates whether the current level of public support to environment-friendly technologies is sufficient to allow European countries to respond to the multiple challenges posed by climate change and other environmental concerns. We first lay out the justifications for...

State aid is one of the instruments through which a state can interfere in the economy. Therefore, state aid is a particular instrument of implementing policy. One of the objectives of environmental policy of the European Union is to hold up a climate change. This can be achieved, among others,...

The authors consider a symmetric model composed of two countries and a firm in each country. Firms produce the same good by means of a polluting technology which uses fossil energy. However, these firms can adopt clean technology which uses renewable energy, having lower costs. Interestingly,...