I investigate how environmental taxation and subsidization impact investment in non-polluting, intermittent renewable power plants such as wind power and photovoltaics in a wholesale electricity market where oligopolistic firms produce electricity from both polluting fossil fuel inputs and...

Using a discrete-continuous model that deals with both consumers' choice and usage of an environmentally differentiated product in a utility-consistent framework, this paper investigates welfare impacts of emission taxes, subsidies and ad valorem taxes/subsidies on a green market where consumers...