domestic and foreign production of other goods. The optimal tax-subsidy scheme is based on an intuitive principle: Impose a …. Producers of renewables-based electricity should receive a subsidy to internalize their contribution to the reduction of global …

consumers from the two countries form one market. We show that the subsidy is positive also when it fails to prevent the exit …

that variations of a renewable energy subsidy change aggregate carbon emissions through an inter-industry leakage effect … parameters. Raising the subsidy always reduces emissions if funded by a lump-sum tax, reinforcing recent findings that tightening … environmental regulation can cause negative leakage. However, if the subsidy is funded by a levy on electricity, it can increase …