Tax Policies for Low-Carbon Technologies
AbstractThis paper discusses the difficulties of achieving climate change policy goals with low-carbon subsidies as opposed to using taxes to raise the price of carbon-intensive activities. First, subsidies lower the cost of energy, and thus encourage consumer demand responses that work in opposition to the goal of reducing emissions. Second, it is difficult to achieve technology neutrality with subsidies. Third, many subsidies are inframarginal. Finally, subsidies often suffer from unintended interactions with other policies. The paper concludes with some observations on the use of price-based instruments and discusses how a carbon tax could be designed to achieve environmental goals over a control period.
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Bibliographic InfoArticle provided by National Tax Association in its journal National Tax Journal.
Volume (Year): 62 (2009)
Issue (Month): 3 (September)
Other versions of this item:
- Gilbert E. Metcalf, 2009. "Tax Policies for Low-Carbon Technologies," NBER Working Papers 15054, National Bureau of Economic Research, Inc.
- Gilbert Metcalf, 2009. "Tax Policies for Low-Carbon Technologies," Discussion Papers Series, Department of Economics, Tufts University 0733, Department of Economics, Tufts University.
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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