Climate policies with pollution externalities and learning spillovers

Arbeitspapier

Economic theory suggests that with a pollution externality and learning spillovers related to renewable energy technologies, the optimal climate policy mix includes an emissions policy and an output subsidy to the learning industry. Instead of output subsidies, feed-in tariffs are often implemented in addition to emissions policies. This paper reveals that this policy mix may theoretically provide for a first-best outcome as well. However, its efficient design may be cumbersome for regulators. An emissions tax must be below the Pigovian level and differentiate between fossil fuels. Moreover, both tax and feed-in tariff must be adapted continuously.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: UFZ Discussion Paper ; No. 10/2009

Classification and Topics

• Classification: Soziale Probleme, Sozialdienste, Versicherungen ; Externalities ; Energy: Government Policy ; Climate; Natural Disasters and Their Management; Global Warming ; Environmental Economics: Government Policy
• Subject: Emissions tax ; feed-in tariffs ; policy mix ; spillovers ; learning by doing ; Klimaschutz ; Ökosteuer ; Internalisierung externer Effekte ; Förderung regenerativer Energien ; Stromtarif ; Administrierter Preis ; Policy-Mix ; Lernprozess ; Spillover-Effekt ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lehmann, Paul
• Event: Veröffentlichung
• (who): Helmholtz-Zentrum für Umweltforschung (UFZ)
• (where): Leipzig
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/44722
• Last update: 10.03.2025, 11:43 AM CET