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Tax on emissions or subsidy to renewable? Evaluating the effects on the economy and the environment

Title
Tax on emissions or subsidy to renewable? Evaluating the effects on the economy and the environment
Type
Article in International Scientific Journal
Year
2015
Authors
Susana Silva
(Author)
FEP
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Óscar Afonso
(Author)
FEP
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Journal
Vol. 23 No. 10
Pages: 690-694
ISSN: 1350-4851
Publisher: Taylor & Francis
Other information
Authenticus ID: P-00K-ESY
Resumo (PT): We examine the relationship between the economy and the environment in a model where production uses nonpolluting renewable and polluting nonrenewable resources. There is policy intervention through a tax on emissions and a subsidy to renewables extraction/production. Results show that both instruments are able to decrease emissions intensity of output. However, when used together, the desired effect is higher. Empirically it is shown that the subsidy achieves higher renewables intensity and although present emissions per output are similar for both instruments, the subsidy achieves lower future levels.
Language: English
Type (Professor's evaluation): Scientific
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