We compare a range of energy efficiency policies in a durable good market subject to both energy-use externalities and price-quality discrimination by a monopolist. We find that the social optimum can be achieved with differentiated subsidies. With ad valorem subsidies, the subsidization of the...

The general conditions for local authorities in Germany have changed fundamentally during the last decades. Not only do municipalities compete with each other for employment, prestige and competitive advantages, they also face increasingly higher demands by their citizens, for instance in the...