More competition in green products markets can help save the planet

Jondeau, Eric, Levieuge, Grégory, Sahuc, Jean-Guillaume and Vermandel, Gauthier (2022) More competition in green products markets can help save the planet. LSE Business Review (27 Sep 2022). Blog Entry.

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Abstract

To reach net-zero emissions, firms will depend on the relative cost of decarbonising their production lines. However, the abatement goods sector – the sector providing climate change mitigation goods – exhibits low competition and thus high prices. Eric Jondeau, Gregory Levieuge, Jean-Guillaume Sahuc, and Gauthier Vermandel argue that subsidies financed by a carbon tax are an efficient instrument to promote firm entry in the abatement goods sector, fostering competition and lowering the cost of abating carbon emissions. They estimate that such a subsidy would reduce the cost of the net-zero transition, saving $2.9 trillion in world GDP each year until 2060.

Item Type:	Online resource (Blog Entry)
Official URL:	https://blogs.lse.ac.uk/businessreview/
Additional Information:	© 2022 The Author(s)
Divisions:	LSE
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management G Geography. Anthropology. Recreation > GE Environmental Sciences
Date Deposited:	17 Nov 2022 14:30
Last Modified:	14 Sep 2024 03:44
URI:	http://eprints.lse.ac.uk/id/eprint/116999

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