Green technology policies versus carbon pricing

• Verfasst von: Rausch, Sebastian [VerfasserIn]
• Verfasst von: Yonezawa, Hidemichi [VerfasserIn]
• Titel: Green technology policies versus carbon pricing
• Titelzusatz: an intergenerational perspective
• Verf.angabe: Sebastian Rausch, Hidemichi Yonezawa
• E-Jahr: 2023
• Jahr: 3 April 2023
• Umfang: 26 S.
• Fussnoten: Online verfügbar 29. März 2023, Artikelversion 3. April 2023 ; Gesehen am 19.05.2023
• Titel Quelle: Enthalten in: European economic review
• Ort Quelle: Amsterdam : Elsevier, 1969
• Jahr Quelle: 2023
• Band/Heft Quelle: 154(2023) vom: Apr., Artikel-ID 104435, Seite 1-26
• ISSN Quelle: 1873-572X
• DOI: doi:10.1016/j.euroecorev.2023.104435
• Datenträger: Online-Ressource
• Sprache: eng
• Bibliogr. Hinweis: Erscheint auch als : Druck-Ausgabe: Rausch, Sebastian, 1978 - : Green technology policies versus carbon pricing. - 2023
• Sach-SW: Carbon pricing
• Sach-SW: Climate policy
• Sach-SW: Command-and-control policies
• Sach-SW: Green technology policy
• Sach-SW: Overlapping generations
• K10plus-PPN: 1845722868

Abstract

Technology policy is the most widespread form of climate policy and is often preferred over seemingly efficient carbon pricing. We propose a new explanation for this observation: gains that predominantly accrue to households with large capital assets and that influence majority decisions in favor of technology policy. We study climate policy choices in an overlapping generations model with heterogeneous energy technologies and distortionary income taxation. Compared to carbon pricing, green technology policy leads to a pronounced capital subsidy effect that benefits most of the current generations but burdens future generations. Based on majority voting which disregards future generations, green technology policies are favored over a carbon tax. Smart “polluter-pays” financing of green technology policies enables obtaining the support of current generations while realizing efficiency gains for future generations.