Gómez, Walter, Sue Yep and Carlos Chávez Rebolledo. 2013. “Subsidios a hogares para inducir adopción de tecnologías de combustión de leña más eficiente y menos contaminantes: Simulación para el caso de Temuco y Padre Las Casas.” Estudios de Economía 40:1: 21-52.
We study the effect of a household subsidy to induce the adoption of more efficient and less polluting wood combustion technologies. We compare, through numerical simulations, several subsidy designs with respect to the impact on aggregate emissions, costs, and cost-effectiveness indicators. Two variables that turn out to be important for the performance of a subsidy program are the remaining time that an existing equipment can be used and the access of the households to credit to fund the co-payment of the equipment. We observe that for different regulatory designs and/or different cost analysis, the performance of a subsidy program based on the cost-effectiveness analysis differs.