The EU Commission considers that a Dutch notified scheme fulfils the conditions of the environmental aid guidelines and passes the compatibility test under Article 107(3)(c) TFEU (Anti-opt-out scheme)

Article published on Lexxion State Aid Blog

Economically Rational Environmental Aid* Introduction A few months ago I wrote an article on this blog explaining the big puzzle of environmental State aid. Since the rules allow State aid which is only a proportion of the extra costs incurred by companies investing in environmentally friendly technology, it is puzzling why they make this investment. After all, they have the option of not incurring those extra costs but achieving exactly the same effects in terms of output, energy generation, etc. They can achieve that by investing in an alternative but cheaper and less environmentally friendly technology. This is the logic of the eligible costs being confined to the extra costs only. The typical response that seeks to explain this puzzle is unsatisfactory. It is often asserted

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Phedon Nicolaides, The EU Commission considers that a Dutch notified scheme fulfils the conditions of the environmental aid guidelines and passes the compatibility test under Article 107(3)(c) TFEU (Anti-opt-out scheme), 16 October 2013, e-Competitions October 2013, Art. N° 62019

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