Climate Effects of Carbon Taxes, Taking into Account Possible Other Future Climate Measures

Florian Habermacher and Gebhard Kirchgässner

No 1110, Economics Working Paper Series from University of St. Gallen, School of Economics and Political Science

Abstract: Increasing fuel extraction costs and global temperatures make it likely that in the medium-term future, technological or political measures against global warming will be implemented. In assessments of current climate policy, possible medium-term future developments, such as backstop technologies, are largely neglected, but such developments may crucially affect policy impacts. If such measures are implemented, a carbon tax introduced now may mitigate climate change to greater effect than recent reflections along the lines of the Green Paradox would suggest. Notably, the weak and the strong version of the Green Paradox, related to current and longer-term emissions, may not materialise. Moreover, the tax may allow the demanding countries to extract part of the resource rent, further increasing its desirability.

Keywords: Climate change policy; greenhouse gas tax; carbon tax; Green Paradox; anticipation effects; exhaustible resources; fossil fuels market; backstop technology; uncertainty; resource rent. (search for similar items in EconPapers)
JEL-codes: Q31 Q38 Q41 Q42 Q54 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2011-03, Revised 2014-02
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Climate Effects of Carbon Taxes, Taking into Account Possible Other Future Climate Measures (2011)
Working Paper: Climate Effects of Carbon Taxes, Taking into Account Possible Other Future Climate Measures (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:usg:econwp:2011:10

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