Does the mixture of policy instruments matter? An empirical test of government support for the private provision of public goods
Governments wishing to encourage the private sector provision of a public good can choose amongst a wide variety of economic instruments. This paper analyses how governments in the EU(15) countries have succeeded in stimulating investment in wind turbines between 1985 and 2000, using national laws and decrees, IEA/OECD data on wind turbines, and one hypothetical investment project to calculate Tobin's Q. The main question addressed is whether the portfolio of policy instruments matters, or whether government support for the private provision of a public good is a matter of a pecuniary transferral.
|Tobin's Q, fiscal investment incentives, private provision of public goods, renewable energy, subsidies|
|Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation (jel E62), Corporate Finance and Governance (jel G3), Externalities; Redistributive Effects; Environmental Taxes and Subsidies (jel H23), Public Goods (jel H41), Business Administration and Business Economics; Marketing; Accounting (jel M), Government Policy (jel Q48)|
|ERIM Report Series Research in Management|
|Organisation||Erasmus Research Institute of Management|
Mulder, A. (2004). Does the mixture of policy instruments matter? An empirical test of government support for the private provision of public goods (No. ERS-2004-073-F&A). ERIM Report Series Research in Management. Retrieved from http://hdl.handle.net/1765/1585