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I recommend the Acemoglu NBER paper on Transition to Clean Energy ( He finds optimal policy is front loaded R&D subsidies with small but gradually escalating carbon tax. Greetings from a former student. Glad to see you posting on this, it's what I focus on in my work with the American Energy Innovation Council. Happy to chat more if you ever want to about energy technology innovation and policy.
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Mar 24, 2015