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Buy Coal or Kick-Start Green Innovation? Energy Policies in an Open Economy

机译：购买煤炭或踢球 - 开始绿色创新？开放经济中的能源政策

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This paper analyses two unilateral policies available to countries that want to rapidly curb carbon emissions in the global economy, but do not own any fossil fuel resources. If fossil fuel owners do not cooperate in CO2 emission reduction efforts, the only strategy to reduce their fossil fuels' use is to exploit the interconnectedness of production given by international trade. We compare a Pigouvian approach, namely a subsidy for renewable energy prices, and a Coasian supply-side strategy, buying extractive rights over fossil fuel deposits abroad. Using a dynamic North-South trade model with endogenous innovation, we show how these policies, designed to prevent an environmental disaster, have different cost and welfare profiles. If fossil fuel deposits can be purchased at their market price, the supply-side policy achieves the highest welfare. If instead the fossil fuel owners require a full compensation for their income loss, subsidies for renewable energy inputs can result in higher welfare, but only if the resource-rich region has less advanced technologies for green energy production than the countries implementing the policy.
机译：本文分析了想要在全球经济中迅速遏制碳排放的国家提供的两个单方面政策，但不拥有任何化石燃料资源。如果化石燃料业主在二氧化碳减排努力中不合作，那么减少化石燃料的使用唯一的策略就是利用国际贸易给出的生产互联。我们比较猪肉方法，即可再生能源价格的补贴，以及共同供应方策略，在国外购买化石燃料储存的提取权。使用具有内源性创新的动态北方贸易模式，我们展示了这些政策如何，旨在防止环境灾害，具有不同的成本和福利概况。如果可以以市场价格购买化石燃料存款，则供应方政策达到最高福利。如果化石燃料业主需要全面赔偿他们的收入损失，可再生能源投入的补贴可能导致更高的福利，但只有在资源丰富的地区拥有更少的绿色能源生产技术，而不是实施该政策的国家。

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