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Emission Taxes and Tradeable Permits A Comparison of Views on Long-Run Efficiency

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  • John Pezzey

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Abstract

We compare three different views on the long runefficiencies of emission taxes which includethresholds (inframarginalexemptions), and of tradeable emission permitswhere some permits areinitially free. The differences are caused bydifferent assumptions aboutwhether thresholds and free permits should besubsidies given only to firmsthat produce, or full property rights. Treatingtax thresholds, as well asfree permits, as property rights would departfrom the conventional view,but would allow greater flexibility in makingeconomic instruments bothefficient and acceptable. Such flexibilitycould be very important inachieving efficient control of greenhouse gasemissions. Copyright Kluwer Academic Publishers 2003

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File URL: http://hdl.handle.net/10.1023/A:1026393028473
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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 26 (2003)
Issue (Month): 2 (October)
Pages: 329-342

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Handle: RePEc:kap:enreec:v:26:y:2003:i:2:p:329-342

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Web page: http://www.springerlink.com/link.asp?id=100263

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Keywords: efficiency; emission taxes; exemptions; thresholds; tradeable permits;

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