EconPapers    
Economics at your fingertips  
 

Global Carbon Cycle and the Optimal Time Path of a Carbon Tax

Y. Hossein Farzin () and Olli Tahvonen

Oxford Economic Papers, 1996, vol. 48, issue 4, 515-36

Abstract: The existing models of fossil fuel consumption with carbon accumulation imply that the optimal time path of carbon tax is either hump-shaped or monotonically decreasing. These models specify the decay of atmospheric carbon as a constant rate of total concentration. The authors extend this specification to more accurately reflect the global carbon cycle models of climatologists and show that this extension changes the basic economic properties of the optimal carbon tax. Their analysis reveals that the optimal carbon tax may as well be constant through time, increase monotonically, or have a U-shape. In addition, optimal resource extraction may have an open-close-open cycle. Copyright 1996 by Royal Economic Society.

Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (75) Track citations by RSS feed

Downloads: (external link)
http://links.jstor.org/sici?sici=0030-7653%2819961 ... 0.CO%3B2-L&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

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: https://EconPapers.repec.org/RePEc:oup:oxecpp:v:48:y:1996:i:4:p:515-36

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by A. Banerjee

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2020-02-15
Handle: RePEc:oup:oxecpp:v:48:y:1996:i:4:p:515-36