Minimizing Negative Externalities while Going Green
26 Pages Posted: 5 Jun 2023
Date Written: June 2, 2023
Abstract
The objective examination of environmentally sustainable projects based on publicly available information raise concerns on their sustainability claims. Most of the projects are the recipients of generous public funds and are found to impose unrecorded externalities on communities that subsidize their development and operations. The welfare destructive effect creates a perpetual dead weight loss in the system with the rights of the fraction of the population to safe environment permanently compromised. I propose a simple incentive based subsidy and carbon offset program to circumvent some of the losses.
Keywords: Subsidy, Climate Change, Carbon Credit, Solar Energy, Wind Energy, Biomass, Sustainability
JEL Classification: D8, Q5
Suggested Citation: Suggested Citation