Arbeitspapier
Optimal Subsidies for Residential Solar
We study the optimal design of spatially-differentiated subsidies for residential solar panels. We build a structural model of solar panel demand and electricity production across the US and estimate the model by combining 1) remotely sensed data on residential solar panels, 2) power-plant-level data on hourly production and emissions, and 3) a state-of-the-art air pollution model. The current subsidies lead to severe spatial misallocation. The optimal cost-neutral reform generates a 6-11% increase in the environmental benefits of residential solar panels. National funding for subsidies under the current system exceeds the unconstrained optimum by over ten-fold.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 10446
- Classification
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Wirtschaft
Taxation and Subsidies: Efficiency; Optimal Taxation
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Alternative Energy Sources
Energy: Government Policy
- Subject
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rooftop solar
optimal taxation
renewable energy
- Event
-
Geistige Schöpfung
- (who)
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Colas, Mark
Saulnier, Emmett
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2023
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Colas, Mark
- Saulnier, Emmett
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2023
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