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| Author: | Arguedas, C. Soest, D.P. van |
| Title: | On reducing the windfall profits in environmental subsidy programs |
| Journal: | Journal of Environmental Economics and Management
2009 : SEP, VOL. 58:2, p. 192-205 |
| Index terms: | environmental policy investments subsidies asymmetric information |
| Freeterms: | abatement technology adoption |
| Language: | eng |
| Abstract: | Investment subsidies are broadly used to induce new technology adoption that can lower the (marginal) cost of reducing emissions. In order to economize on these subsidies, governments would like to distinguish btw. firms that need to receive a subsidy to adopt a new technology, and firms that would adopt that technology even without subsidies. It is shown that policies including a menu of emission taxes and investment subsidies can potentially induce firms to self-select. |
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