Study explores how backing for clean technology should be designed
Thursday, January 21, 2016 - 06:41
in Physics & Chemistry
Governments often offer subsidies to consumers for clean-technology products, from home solar panels to electric vehicles. But what are the right levels of subsidy, and how should they be calculated? As a new paper co-authored by MIT researchers shows, governments can easily make subsidies too low when they ignore a basic problem: Consumer demand for these products is usually highly uncertain.