This European survey examines (a) Government subsidies for investment in green technologies are justified by substantial benefits coming from reducing unpriced carbon emissions and generating positive R&D spillovers; (b) Using subsidies for green technologies instead of full carbon prices will lead to substantially more rent-seeking and hence substantially higher costs to achieve a given reduction in emissions
Keyword: subsidies
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This US survey examines (a) Government subsidies for investment in green technologies are justified by substantial benefits coming from reducing unpriced carbon emissions and generating positive R&D spillovers; (b) Using subsidies for green technologies instead of full carbon prices will lead to substantially more rent-seeking and hence substantially higher costs to achieve a given reduction in emissions
This European survey examines (a) Loosening regulations on state aid to allow targeted incentives for companies in certain sectors will substantially improve the EU’s relative attractiveness for corporate investment; (b) Loosening regulations on state aid will give a substantial advantage to the economies of EU members with stronger public finances; (c) Even if looser regulations on state aid are temporary, they risk permanent damage to the EU’s longstanding competition policy regime
This European survey examines (a) Without government intervention, take-up of electric vehicles will be substantially less than is desirable to reduce carbon emissions; (b) To encourage greater take-up of electric vehicles, public expenditure on infrastructure to support them (such as charging stations) is likely to be more cost-effective than providing equivalent amounts as tax credits/purchase rebates for buyers
This US survey examines (a) In the aftermath of Hurricane Ian, the level of Florida’s GDP in five years will be substantially lower than it otherwise would; (b) The prospect of further costly extreme weather events means that there is a substantial chance that some private property insurance markets will no longer exist in ten years in states such as Florida; (c) Without large government subsidies, mandated flood insurance requirements would substantially reduce losses from subsequent natural disasters by encouraging economic activity to migrate from the most flood-prone areas
This week’s IGM Economic Experts Panel statements:
A) When local governments compete by offering subsidies to a firm that is willing to relocate, and shopping across multiple alternative areas, the firm typically captures most of value that is created via the relocation.
B) A federal prohibition against states and municipalities offering tax subsidies to attract specific businesses that are shopping across multiple areas to relocate would be welfare improving for the average taxpayer.
This week's IGM Economic Experts Panel statement:
The European Union often uses its antitrust powers to protect EU-based firms from international competition, rather than to promote greater competition in European markets.
This week's IGM European Economic Experts Panel Statement:
The European Union often uses its antitrust powers to protect EU-based firms from international competition, rather than to promote greater competition in European markets.
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