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When State aid overlaps with market based mechanisms: an example from energy markets

The Lear Competition Note (LCN) discusses the existing literature on the interaction between State aid intervention that incentivizes the investment in decarbonisation technologies and the market-based mechanism relying on the European Union Emission Trading System (ETS). Now in its fourth phase, the EU ETS is often considered the most effective policy to reduce greenhouse gas emissions.

The Lear Competition Note is available here
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Date: 15 July 2021
Tag(s): Energy, policy evaluation, State aid