Green Subsidies with Demand Distortions -- by Susanna B. Berkouwer, Joshua T. Dean

For generous financial support we thank the International Growth Center, the Weiss Fund for Research in Development Economics, the Penn Global Holman Africa Fund, the Mack Institute, Wharton Impact, Wharton Global Initiatives, the Wharton Behavioral Lab, and the University of Chicago Development Economics Research Fund. We thank numerous seminar participants for helpful comments. Busara (in particular Suleiman Amanela and Debra Opiyo) superbly implemented field activities. We thank Marta Westerstahl and Rosemary Zhang for excellent research assistance. This study has research approval in Kenya (MIRERC 069/2025 and Nakuru Trade Permit No. 2025/H23H7831401) and in the US (University of Pennsylvania IRB Protocol #855529). A Pre-Analysis Plan was filed with the AEA RCT Registry (ID: 16832).

Susanna Berkouwer declares that their brother, Meskes Berkouwer, is an employee at Burn Manufacturing, joining on January 9th, 2023 as Carbon Finance Strategy Manager. This employment is purely coincidental and he has in no way participated in or influenced this research.

• online appendix
• randomized controlled trials registry entry