developing country and we analyze the effects of a subsidy program to pollution abatement industry located in the North. We find … that, contrarily to common intuition, the subsidy to the pollution abatement equipment industry might reduce welfare in the … compensated by an increase in trans-boundary pollution which is detrimental to the productivity of environmental sensitive sectors …

policy. Therefore, an eco-industry sector which supplies pollution abatement goods and services arises. Abatement goods and … pollution, which can be transboundary or purely local, affects consumers in both countries; we analyse both cases. Our main … a decrease in the environmental policy at home to decrease pollution abroad. This result does not rely on interactions …

high availability. Moreover, the subsidy scheme is substantially more complex than a first-best Pigouvian tax. The optimal … renewable subsidy is always positive but tends to decrease as electricity production becomes less reliant on fossils. The … optimal storage subsidy even changes its sign. It is usually negative as long as fossils contribute to filling the storage …

This paper demonstrates that a pollution tax with a fixed cost component may lead, by itself, to segregation between … locations and two industries (clean and dirty) where pollution is a by-product of dirty good manufacturing. Under proper … outcome when there is a fixed cost component of the pollution tax. Moreover, a stratified Pareto optimum can never be …