NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Designing Dynamic Subsidies to Spur Adoption of New Technologies

Ashley Langer, Derek Lemoine

NBER Working Paper No. 24310
Issued in February 2018, Revised in August 2018
NBER Program(s):The Environment and Energy Program, The Public Economics Program

We analyze the efficient subsidy for durable good technologies. We theoretically demonstrate that a policymaker faces a tension between intertemporally price discriminating by designing a subsidy that increases over time and taking advantage of future technological progress by designing a subsidy that decreases over time. Using dynamic estimates of household preferences for residential solar in California, we show that the efficient subsidy increases over time. The regulator's spending quintuples when households anticipate future technological progress and future subsidies.

download in pdf format
   (1236 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w24310

Users who downloaded this paper also downloaded* these:
Eggertsson, Robbins, and Wold w24287 Kaldor and Piketty’s Facts: The Rise of Monopoly Power in the United States
Taddy w24301 The Technological Elements of Artificial Intelligence
Lemoine w23420 Innovation-Led Transitions in Energy Supply
Hurd, McFadden, Chand, Gan, Menill, and Roberts Consumption and Savings Balances of the Elderly: Experimental Evidence on Survey Response Bias
Berry and Haile w15276 Nonparametric Identification of Multinomial Choice Demand Models with Heterogeneous Consumers
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us