Quentin Grafton, R.; Kompas, Tom; Van Long, Ngo - In: Journal of Environmental Economics and Management 64 (2012) 3, pp. 328-341
We show that (i) subsidies for renewable energy policies with the intention of encouraging substitution away from fossil fuels may accentuate climate change damages by hastening fossil fuel extraction, and that (ii) the opposite result holds under some specified conditions. We focus on the case...