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On reducing the windfall profits in environmental subsidy programs

Arguedas,C.
; 
van Soest,D.P.
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.
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Date
2009
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Tilburg University Research Output Collection
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Keywords
SDG 13 - Climate Action
Citation
Arguedas, C & van Soest, D P 2009, 'On reducing the windfall profits in environmental subsidy programs', Journal of Environmental Economics and Management, vol. 58, no. 2, pp. 192-205.
URI
https://hdl.handle.net/20.500.14602/51600
License
info:eu-repo/semantics/restrictedAccess
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