Public Policies Against Global Warming
42 Pages Posted: 13 Sep 2007
There are 2 versions of this paper
Public Policies Against Global Warming
Public Policies Against Global Warming
Date Written: August 2007
Abstract
Judged by the principle of intertemporal Pareto optimality, insecure property rights and the greenhouse effect both imply overly rapid extraction of fossil carbon resources. A gradual expansion of demand-reducing public policies - such as increasing ad-valorem taxes on carbon consumption or increasing subsidies for replacement technologies - may exacerbate the problem as it gives resource owners the incentive to avoid future price reductions by anticipating their sales. Useful policies instead involve sequestration, afforestation, stabilization of property rights and emissions trading. Among the public finance measures, constant unit carbon taxes and source taxes on capital income for resource owners stand out.
Keywords: global warming, carbon taxes, Pareto optimality
JEL Classification: O13, Q32, Q54, H23
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Carbon Leakage With International Technology Spillovers
By Reyer Gerlagh and Onno Kuik
-
Carbon Leakage Revisited: Unilateral Climate Policy with Directed Technical Change
-
Carbon Leakage, the Green Paradox and Perfect Future Markets
By Thomas Eichner and Rudiger Pethig
-
Carbon Leakage, the Green Paradox, and Perfect Future Markets
By Thomas Eichner and RĂ¼diger Pethig
-
Pareto Optimality in the Extraction of Fossil Fuels and the Greenhouse Effect: A Note
-
Pareto Optimality in the Extraction of Fossil Fuels and the Greenhouse Effect: A Note
-
Property Rights and Efficiency of Markets for Environmental Services
-
Is There Really a Green Paradox?
By Rick Van Der Ploeg and Cees Withagen