This paper studies the distributional impacts of optimal carbon taxation on fossilfuels owners. We show that optimal carbon taxation can increase the pro ts of owners of a carbon-emitting exhaustible resource. Such phenomenon contrasts with claims from fossil-fuels owners especially from OPEC member countries that carbon taxation will undermine their pro ts. We build a theoretical model of reso...

Ho ow w O Of ff fs se et ts s D De ef fe ea at te ed d t th he e K Ky yo ot to o P Pr ro ot to oc co ol l Abstract Developing countries sell carbon offset credits at a profit, but that profit would be reduced if they accepted a cap on emissions. This linkage increases their resistance to accepting such caps. Also, the profitability of offsets motivates developing countries to insist on stricter...

We use a model of domestic and international tourist numbers and flows to estimate the impact of the recent and proposed changes in the Air Passenger Duty (APD) of the United Kingdom. We look at four different scenarios (abolishing the APD, keeping the 2001 APD level, the 2007 APD and the Conservative Party’s ‘‘Green Miles’’ proposal) using base, high and very high elasticity levels as well as ...

This paper presents a review of the CO2 based company car taxation that has been in place in the UK since 2002. One aim of this ecotaxation reform was to promote the uptake of low carbon vehicle technologies, but in practice the tax reform led to the widespread use of diesel cars. With company cars making up 55% of new car sales, this has led to a major shift towards diesel in the UK car stock ...

This paper presents a review of the CO2 based company car taxation that has been in place in the UK since 2002. One aim of this ecotaxation reform was to promote the uptake of low carbon vehicle technologies, but in practice the tax reform led to the widespread use of diesel cars. With company cars making up 55% of new car sales, this has led to a major shift towards diesel in the UK car stock ...

This paper studies the timing of subsidies for emissions-saving research and development (R&D) and how innovation policy is influenced by a carbon tax. We develop a dynamic computable general equilibrium (CGE) model with both general R&D and specific emissions-saving R&D. We find two results that are important when subsidizing emissions-saving R&D in order to target inefficiencies in the resear...

Most current cost-benefit analyses of climate change policies suggest an optimal global climate policy that is significantly less stringent than the level required to meet the internationally agreed 2 °C target. This is partly because the sum of estimated economic damage of climate change across various sectors, such as energy use and changes in agricultural production, results in only a small ...

We analyse welfare effects of supporting general versus emission saving technological development when carbon emissions are regulated by a carbon tax. We use a computable general equilibrium model with induced technological change (ITC). ITC is driven by two separate, economically motivated research and development (R&D) activities, one general and one emission saving specified as carbon captur...

There is a considerable body of literature that has studied whether or not an adequately designed tax swap, whereby an ecotax is levied and some other tax is reduced keeping government income constant, may achieve a so-called double dividend, that is, an increase in environmental quality and an increase in overall efficiency. Arguments in favor and against are abundant. Our position is that the...