Climate change mitigation policies: Are R&D subsidies preferable to a carbon tax ?

André Grimaud and Gilles Lafforgue

Revue d'économie politique, 2008, vol. 118, issue 6, 915-940

Abstract: We consider a general equilibrium climate change model with two endogenous R&Dsectors. First, we characterize the set of decentralized equilibria : to each vector of publictools ? a carbon tax and a subsidy to each R&D sector ? is associated a particularequilibrium. Second, we compute the optimal tools. Third, we perform various second-best analysis by imposing some constraints on one or several policy. The main resultsof the paper are the following : i) both a carbon tax and a green research subsidycontribute to the climate change mitigation ; ii) R&D subsidies have a large impact onthe consumption, and then on the social welfare, as compared with the carbon tax usedalone ; iii) those subsidies allow to spare the earlier generations who are, on the otherhand, penalized by a carbon tax.

Keywords: Climate change; second-best policies; energy-directed technical change; carbon tax; research subsidies (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.cairn.info/load_pdf.php?ID_ARTICLE=REDP_186_0915 (application/pdf)
http://www.cairn.info/revue-d-economie-politique-2008-6-page-915.htm (text/html)
free

Related works:
Working Paper: Climate change mitigation policies: Are R&D subsidies preferable to a carbon tax? (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cai:repdal:redp_186_0915

Access Statistics for this article

More articles in Revue d'économie politique from Dalloz
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().