model, I show that a subsidy on input factors in a Cobb-Douglas production function may contribute substantially to …

. We, first, derive analytically the optimal subsidy in a spatial partial equilibrium model of a city with two zones where … vehicles and electric vehicles. There we find that the optimal subsidy rate is the sum of changes in externality costs … simulations to calculate sign and size of the optimal subsidy or tax rate. This model is calibrated to a typical German …

Different reports including the broadly cited OECD fossil fuel subsidy inventory arrive at high monetary values of … national and sectoral net carbon prices for the top six emitters (China, US, India, Russia, Japan and Germany) and for Poland … Germany and Russia have similar subsidy levels in the OECD inventory, the national net carbon price in Germany is 50 €/tCO2 …