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How to Turn an Industry Green: Taxes versus Subsidies

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dc.creator Dröge, Susanne
dc.creator Schröder, Philipp J. H.
dc.date 2003
dc.date.accessioned 2013-10-16T06:58:09Z
dc.date.available 2013-10-16T06:58:09Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18077
dc.identifier ppn:370221060
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18077
dc.description Environmental policies frequently target the ratio of dirty to green output within the same industry. To achieve such targets the green sector may be subsidised or the dirty sector be taxed. This paper shows that in a monopolistic competition setting the two policy instruments have different welfare effects. For a strong green policy (a severe reduction of the dirty sector) a tax is the dominant instrument. For moderate policy targets, a subsidy will be superior (inferior) if the initial situation features a large (small) share of dirty output. These findings have implications for policies such as the Californian Zero Emission Bill or the EU Action Plan for Renewable Energy Sources.
dc.language eng
dc.publisher Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
dc.relation DIW-Diskussionspapiere 341
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject Q28
dc.subject H2
dc.subject L13
dc.subject ddc:330
dc.subject Environmental policy
dc.subject Monopolistic competition
dc.subject Taxes
dc.subject Subsidies
dc.subject Welfare
dc.subject Zero Emission Bill
dc.subject Umweltabgabe
dc.subject Umweltschutz
dc.subject Subvention
dc.subject Mehr-Sektoren-Modell
dc.subject Monopolistischer Wettbewerb
dc.subject Wohlfahrtseffekt
dc.subject Theorie
dc.title How to Turn an Industry Green: Taxes versus Subsidies
dc.type doc-type:workingPaper


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