A Tax-Based Approach to Slowing Global Climate Change
Joseph Aldy (),
Eduardo Ley and
Ian Parry ()
Discussion Papers from Resources For the Future
In this paper, we discuss the design of carbon dioxide (CO2) taxes at the domestic and international level and the choice of taxes versus a cap-and-trade system. A strong case can be made for taxes on uncertainty, fiscal, and distributional grounds, though this critically hinges on policy specifics and how revenues are used. The efficient near-term tax is at least $5–$20 per ton of CO2 and the tax should be imposed upstream with incentives for downstream sequestration and abatement of other greenhouse gases. At the international level, a key challenge is the possibility that emissions taxes might be undermined through offsetting changes in other energy policies.
Keywords: Global climate change; CO2 tax; cap-and-trade; policy design (search for similar items in EconPapers)
JEL-codes: Q54 Q58 H23 (search for similar items in EconPapers)
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 (16) Track citations by RSS feed
Downloads: (external link)
Journal Article: A Tax–Based Approach to Slowing Global Climate Change (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:rff:dpaper:dp-08-26
Access Statistics for this paper
More papers in Discussion Papers from Resources For the Future
Series data maintained by Webmaster ().