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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/10419/39024
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| Title: | | The choice of environmental policy instruments: Energy efficiency and redistribution  |
| Authors: | | Haupt, Alexander Stadejek, Magdalena |
| Issue Date: | | 2010 |
| Series/Report no.: | | CESifo working paper Resources and Environment 2986 |
| Abstract: | | We analyse optimal environmental policies in a market that is vertically differentiated in terms of the energy efficiency of products. Considering energy taxes, subsidies to firms for investment in more eco-friendly products, and product standards, we are particularly interested in how distributional goals in addition to environmental goals shape the choice of policy instruments. Surprisingly, we find that an industry-friendly government levies an energy tax to supplement a lax product standard, but shies away from subsidies to firms. By contrast, a consumer-friendly government relies heavily on a strict product standard and in addition implements a moderate subsidy to firms, but avoids energy taxes. |
| Subjects: | | energy tax energy efficiency standard subsidy vertically differentiated markets product quality |
| JEL: | | Q58 Q48 L13 L15 L50 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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