Casey, Gregory; Jeon, Woongchan; Traeger, Christian - 2023
We study clean energy subsidies in a quantitative climate-economy model. Clean en-ergy subsidies decrease carbon … emissions if and only if they lower the marginal product of dirty energy. The constrained-efficient subsidy equals the marginal … external cost of dirty energy multiplied by the marginal impact of clean energy production on dirty energy production. With …