Global Warming, Proportional Carbon Taxes, and International Fund for Atmospheric Stabilization

Hirofumi Uzawa

Review of Development Economics, 2010, vol. 14, issue 1, 1-19

Abstract: In this paper, we prove in terms of a simple dynamic model of global warming that sustainable time‐paths of the atmospheric accumulations of carbon dioxide are obtained as the standard market equilibrium under the system of proportional carbon taxes, where the carbon taxes are levied at the rate that is proportional to the per capita national income of each country, with the discounted present value of the impact coefficient of global warming as the coefficient of proportion.

Date: 2010
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