Carbon tax

Optimal carbon tax doubled

Typically, cost–benefit analysis (CBA) has suggested ‘optimal’ carbon tax regimes that result in a global temperature rise of around 3 °C, or even eventually (post-2100) 4 °C, above preindustrial levels. However, risk analysis approaches indicate that these levels of temperature rise result in climate change impacts that pose a high or very high level of risk to society and ecosystems1 (Fig. 1)...

A Carbon Tax in China ?

Tax Policy Issues in Designing a Carbon Tax

A carbon tax is a promising tool for discouraging the greenhouse gas emissions that cause climate change. In principle, a well-designed tax could reduce the risk of climate change, minimize the cost of emissions reductions, encourage innovation in low-carbon technologies, and raise new public revenue. But designing a real-world carbon tax poses significant challenges. We analyze those challenge...

Carbon tax or carbon permits: the impact on generators’ risks

generators’ risks Richard Green Institute for Energy Research and Policy University of Birmingham, Birmingham B15 2TT Tel: +44 121 415 8216 Email: [email protected] October 2007 Abstract Volatile fuel prices affect both the cost and price of electricity in a liberalized market. Generators with the price-setting technology will face less risk to their profit margins than those with costs that...

Cap - and - Trade or a Carbon Tax ?

W political leaders in the European Union, Canada, Australia, Japan, and the U.S. Congress move toward cap-and-trade systems as their preferred approach for achieving meaningful reductions in emissions of CO2 and other greenhouse gases, there is a lively debate among economists, many of whom have been critical of the cap-and-trade approach in the climate context and have endorsed carbon taxes i...