期刊名称：Departmental Discussion Papers / University of Glasgow, Department of Economics
出版年度：2008
卷号：1
出版社：University of Glasgow, Department of Economics
摘要：We develop a general equilibrium vintage capital model with embodied energy-
saving technological progress and an explicit energy market to study the impact of
investment subsidies on investment and output. Energy and capital are assumed to
be complementary in the production process. New machines are less energy con-
suming and scrapping is endogenous. It is shown that the impact of investment
subsidies heavily depends on the structure of the energy market, the mechanism
explaining this outcome relying on the tight relationship between the lifetime of
capital goods and energy prices via the scrapping conditions inherent to vintage
models. In particular, under a free entry structure for the energy sector, invest-
ment subsidies boost investment, while the opposite result emerges under natural
monopoly if increasing returns in the energy sector are not strong enough.
