Economics at your fingertips  

High Does Nothing and Rising Is Worse: Carbon Taxes Should Keep Declining to Cut Harmful Emissions

Peter J N Sinclair

The Manchester School of Economic & Social Studies, 1992, vol. 60, issue 1, 41-52

Abstract: It is often that greenhouse gas emissions should be curbed by taxes on activities that generate them. This paper continues the case for taxes on fossil fuels in the context of an infinite-horizon growth model. Under simple conditions, a constant tax rate on energy use is found to exert no real effect: energy taxes just squeeze rents and have no impact on the time-profile of extraction. Expectations of falling energy taxes are what is needed to reduce extraction rates and postpone such adverse consequences that carbon emissions induce. Copyright 1992 by Blackwell Publishers Ltd and The Victoria University of Manchester

Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (20) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in The Manchester School of Economic & Social Studies from University of Manchester Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2019-11-10
Handle: RePEc:bla:manch2:v:60:y:1992:i:1:p:41-52