Reposted by Felix Schmidt
Excited to share a new paper!
We find that renewable subsidies may cost less than often thought because subsidies can correct a market failure that is often ignored. Same applies to CO2 pricing.
Open access: findingspress.org/article/9499...
findingspress.org
Effects of Electricity Sector Climate Policies in a Second-best World of Missing Risk Markets | Published in Findings
By Emil Dimanchev, Stein-Erik Fleten & 2 more. Estimates of climate policy costs are inflated when inefficiencies of financial markets are ignored.
