Under perfect competition on the output market, first best technology subsidies in the presence of learning by doing are justified by knowledge spill overs that are not accounted for by individual companies. First best output subsidies are thus depending directly on the learning effects and are,...

Focusing on European countries, this paper investigates the link between market-oriented institutions, as measured by the economic freedom index, and the production of energy from renewable sources. A dynamic panel approach shows that this correlation is positive and significant while the...