TY - JOUR
T1 - Optimal economic growth and energy policy
T2 - analysis of nonrenewable and renewable energy
AU - Sakamoto, Tomoyuki
AU - Managi, Shunsuke
N1 - Publisher Copyright:
© 2015, Society for Environmental Economics and Policy Studies and Springer Japan.
Copyright:
Copyright 2016 Elsevier B.V., All rights reserved.
PY - 2016/1/1
Y1 - 2016/1/1
N2 - This article analyzes the taxes levied on the nonrenewable energy sector and the subsidies awarded for renewable energy use. Applying the decentralized economy model with a parallel use of two types of energy, we find that the decentralized economy cannot attain the social optimum due to externality in the market economy. Using optimal tax to attain the social optimum in the decentralized economy entails imposing it on the nonrenewable energy sector. Using damage functions for simulation in our model, we find that the worse the environmental damage is, the larger the cost.
AB - This article analyzes the taxes levied on the nonrenewable energy sector and the subsidies awarded for renewable energy use. Applying the decentralized economy model with a parallel use of two types of energy, we find that the decentralized economy cannot attain the social optimum due to externality in the market economy. Using optimal tax to attain the social optimum in the decentralized economy entails imposing it on the nonrenewable energy sector. Using damage functions for simulation in our model, we find that the worse the environmental damage is, the larger the cost.
UR - http://www.scopus.com/inward/record.url?scp=84961312860&partnerID=8YFLogxK
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U2 - 10.1007/s10018-015-0108-3
DO - 10.1007/s10018-015-0108-3
M3 - Article
AN - SCOPUS:84961312860
VL - 18
SP - 1
EP - 19
JO - Environmental Economics and Policy Studies
JF - Environmental Economics and Policy Studies
SN - 1432-847X
IS - 1
ER -
