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Tax x Low-Carbon Energy (Metcalf)

Tax policies for low-carbon energy” by Gilbert E. Metcalf on VoxEU. Economists often advocate taxes or cap-and-trade schemes to fight pollution, but US policy primarily subsidises clean energy alternatives. This column critiques such subsidies on four counts: they lower the cost of energy, pick favourite technologies, are often “inframarginal”, and interact in unexpected ways with other policies. http://migre.me/12PUU

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