Can subsidies rather than pollution taxes break the trade-off between economic output and environmental protection?
نویسندگان
چکیده
We build a general equilibrium dynamic model in which individual investors are endowed with “warm-glow” preferences à la Andreoni (1990) so that they feel partly responsible for the pollution content of their portfolio. Through investors’ portfolio choice, firms induced to engage costly abatement activities, given higher also implies cost capital. In this scenario, we characterize economy and investigate, through fiscal reform analysis, effects such tax instruments on scale economy, per-capita consumption, “pollution premium”. show an increase tax, while reducing pollution, depresses premium. On contrary, subsidies activity increases can decrease premium consumption. All our results have relevant testable implications, leave future empirical research.
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ژورنال
عنوان ژورنال: Energy Economics
سال: 2021
ISSN: ['1873-6181', '0140-9883']
DOI: https://doi.org/10.1016/j.eneco.2020.105084