Article ID Journal Published Year Pages File Type
959092 Journal of Environmental Economics and Management 2009 14 Pages PDF
Abstract

Investment subsidies are widely used to induce adoption of new technologies that can lower the (marginal) cost of reducing emissions. To economize on these subsidies, governments would like to distinguish between firms that need to receive a subsidy to adopt a new technology, and firms that would adopt that technology even without subsidies. We show that policies consisting of a menu of emission taxes and investment subsidies can potentially induce firms to self-select.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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