EconStor >
Technische Universität Braunschweig >
Institut für Volkswirtschaftslehre, Technische Universität Braunschweig >
Economics Department Working Paper Series, TU Braunschweig  >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/51319
  
Title:Welfare effects of subsidizing a dead-end network of less polluting vehicles PDF Logo
Authors:Dietrich, Antje-Mareike
Sieg, Gernot
Issue Date:2011
Series/Report no.:Economics Department Working Paper Series 12
Abstract:This article shows that in the presence of environmental externalities, it may be welfare enhancing to overcome a technological lock-in by a deadend technology through governmental intervention. It is socially desirable to subsidize a dead-end technology if its environmental externality is small relative to the one of the established technology, if the installed base and/or the strength of the network effect is small and if future generations matter. Applying our results to the private transport sector, governments promoting alternatives to gasoline-driven vehicles have to be aware of these opposing welfare effects.
Subjects:environmental externalities
network effects
private transport
technological change
JEL:O33
L92
Q55
Document Type:Working Paper
Appears in Collections:Economics Department Working Paper Series, TU Braunschweig

Files in This Item:
File Description SizeFormat
671174509.pdf726.76 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/51319

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.