dc.contributor.author | Nagy, Roel | |
dc.contributor.author | Hagspiel, Verena | |
dc.contributor.author | Kort, P.M. | |
dc.date.accessioned | 2021-09-23T07:03:50Z | |
dc.date.available | 2021-09-23T07:03:50Z | |
dc.date.created | 2021-05-21T11:38:16Z | |
dc.date.issued | 2021 | |
dc.identifier.citation | Energy Economics. 2021, 98, . | en_US |
dc.identifier.issn | 0140-9883 | |
dc.identifier.uri | https://hdl.handle.net/11250/2780633 | |
dc.description.abstract | Subsidies initially installed to stimulate green capacity investments tend to be withdrawn after some time. This paper analyzes the effect on investment of this phenomenon in a dynamic framework with demand uncertainty. We find that increasing the probability of subsidy withdrawal incentivizes the firm to accelerate investment at the expense of a smaller investment size. A similar effect is found when subsidy size as such is increased. When subsidy withdrawal risk is zero or very limited, installing a subsidy could increase welfare. In general we get that the larger the subsidy withdrawal probability, the smaller the welfare maximizing subsidy rate is. Therefore, a policy maker aiming to maximize welfare should try to reduce subsidy withdrawal risk. | en_US |
dc.language.iso | eng | en_US |
dc.publisher | Elsevier Science | en_US |
dc.rights | Navngivelse 4.0 Internasjonal | * |
dc.rights.uri | http://creativecommons.org/licenses/by/4.0/deed.no | * |
dc.title | Green capacity investment under subsidy withdrawal risk | en_US |
dc.type | Peer reviewed | en_US |
dc.type | Journal article | en_US |
dc.description.version | publishedVersion | en_US |
dc.source.volume | 98 | en_US |
dc.source.journal | Energy Economics | en_US |
dc.identifier.doi | https://doi.org/10.1016/j.eneco.2021.105259 | |
dc.identifier.cristin | 1911282 | |
dc.relation.project | Norges forskningsråd: 268093 | en_US |
dc.source.articlenumber | 105259 | en_US |
cristin.ispublished | true | |
cristin.fulltext | original | |
cristin.qualitycode | 1 | |