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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/38926
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| Title: | | International carbon emissions trading and strategic incentives to subsidize green energy  |
| Authors: | | Eichner, Thomas Pethig, Rüdiger |
| Issue Date: | | 2010 |
| Series/Report no.: | | CESifo working paper Energy and Climate Economics 3083 |
| Abstract: | | This paper examines strategic incentives to subsidize green energy in a group of countries that operates an international carbon emissions trading scheme. Welfare-maximizing national governments have the option to discriminate against energy from fossil fuels by subsidizing green energy, although in our model green energy promotion is not efficiency enhancing. The cases of small and large countries turn out to exhibit significantly differences. While small countries refrain from subsidizing green energy and thus implement the efficient allocation, large permit-importing countries subsidize green energy in order to influence the permit price in their favor. |
| Subjects: | | emissions trading black energy green energy energy subsidies |
| JEL: | | H21 Q42 Q48 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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