Renewable energy sources policies in a Bayesian DSGE modelRenewable energy sources policies in a Bayesian DSGE model Peer-Reviewed Journal Publication Δημοσίευση σε Περιοδικό με Κριτές 2019-09-132018enEnvironmental policy measures to reduce greenhouse gases emission to mitigate climate change are common practice in many developed countries, encompassing both technology-push measures and demand-pull measures. The effectiveness of such policies continues to need investigation, especially when shortsighted measures lead to suboptimal investments in the absence of a credible government commitment. The aim of this paper is to assess the effectiveness of a comprehensive strategy for renewable energy sources in a dynamic stochastic general equilibrium model estimated for the Euro area using Bayesian estimation techniques, which includes carbon tax and subsidy measures. To this end, we compare the cost-effectiveness of technology-push measures and demand-pull measures. Our findings show that the environmental policy based on technology-push measures may produce better dynamic effects than demand-pull measures based on a subsidy policy of equal monetary amount. In fact, RES price parity is estimated to occur sooner by implementing technology-push measures than demand-pull measures.http://creativecommons.org/licenses/by/4.0/Renewable Energy120May 201860-68 Argentiero Amedeo Bollino Carlo Andrea Micheli Silvia Zopounidis Konstantinos Ζοπουνιδης Κωνσταντινος Elsevier Fossil fuels Knowledge capital Monetary subsidy Renewable energy sources