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

• Type: Article in International Scientific Journal
• Date: 2015

Authors

Susana Silva (Author) FEP; Maria Isabel Soares (Author) FEP; Óscar Afonso (Author) FEP

Journal

Title: Applied Economics Letters

Vol. 23 No. 10

Pages: 690-694

ISSN: 1350-4851

Publisher: Taylor & Francis

Indexing

ISI Web of Knowledge - 3 Citations

Scopus - 4 Citations

Other information

Authenticus ID: P-00K-ESY

DOI: 10.1080/13504851.2015.1100243

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