The paper compares the effects of market-based and command-and-control climate policies on the direction of technical change and the prevention of environmental disasters. Drawing on the model proposed in Acemoglu et al. (2012), we show that market-based policies (carbon taxes and subsidies towards clean sectors) exhibit bounded window of opportunities: delays in their implementation make […]
![Preventing Environmental Disasters: Market-Based vs. Command-and-Control Policies working_paper_2016_24_cover](http://www.isigrowth.eu/wp-content/uploads/2016/07/working_paper_2016_24_cover-100x100.jpg)