Market-based instruments are believed to create more efficient incentives for firmsto adopt new technologies than …

exposed firms by subsidizing their investments in abatement technology. The suppliers of such technologies tend to be less … context of twin market failures, we consider the relative effects and desirability of subsidies for abatement technology. We … increase global abatement technology prices, reduce pollution abatement abroad and increase emission leakage. On the contrary …

goods. It does so when the abatement technology is end-of-pipe. When the abatement technology is integrated however, either … lowest value at the point where the Marginal Abatement Cost curves intersect. These results hold with emission taxation …