Effective carbon taxes need green nudges

Trade and Carbon Taxes

How Effective are Emission Taxes

*Ishikawa: Hitotsubashi University, Kunitachi, Tokyo 186-8601, Japan. Fax: 81-42-580-8195; E-mail: [email protected]. Kuroda: Nagoya Gakuin University, Seto, Aichi 480-1298, Japan. Phone: 81-561-42-0350; E-mail: [email protected]. We are grateful to an anonymous referee, seminar participants at Nagoya Gakuin University and RIETI and the participants of Kobe COE One-Day Conference on Labor M...

Carbon Taxes and Deficit Reduction

This paper looks at both the efficiency and distributional implications of a carbon tax and/or other energy taxes as part of a package of measures to address the budget deficit. We build a dynamic general-equilibrium overlapping-generations model (OLG) of the U.S. economy, including detail on government taxes and expenditures and a disaggregated production structure including several energy ind...

When do increasing carbon taxes accelerate global warming? A note on the green paradox

The ‘‘green paradox’’ by Hans–Werner Sinn suggests that increasing resource taxes accelerate global warming because resource owners increase near-term extraction in fear of higher future taxation. In this note we show that this effect does only occur for the specific set of carbon taxes that increase at a rate higher than the effective discount rate of the resource owners. We calculate a critic...

Some Basic Economics of Carbon Taxes

This paper asks three questions. First, how do carbon taxes drive economic and environmental outcomes? Second, what is the appropriate economic base on which carbon taxes should be levied? Finally, how well does a carbon tax deliver economicenvironmental outcomes compared to a comparable emissions trading scheme.