Tax policies to reduce carbon emissions

Abstract Carbon taxes or similar pricing instruments could play a crucial role in helping countries decarbonise their economies. No country has single carbon price that applies to all greenhouse gas emissions. The UK is typical having adopted complex patchwork of policies raise the cost different polluting activities degrees, resulting implied vary greatly across sources We document and quantify these inconsistencies case UK, assess for greater uniformity after accounting considerations efficiency, distribution, leakage use alternative policy instruments. argue rationalisation environmental other developed