The authors analyze the optimal time path of a carbon tax when it is recognized that global warming damages are related to the atmospheric stock of CO[subscript]2 and that the stock of fossil fuels is exhaustible. The authors show that some factors cause the carbon tax to rise while others cause it to fall, so no general analytical result emerges. Numerical results suggest that a carbon tax should initially rise and then fall. This contradicts the findings of P. Sinclair (1992), who argued that a carbon tax should be falling; the authors show that this result depends on some implausible features of his model. Copyright 1994 by Royal Economic Society.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 46 (1994) Issue (Month): 0 (Supplement Oct.) Pages: 857-68 Download reference. The following formats are available: HTML,
plain text,
BibTeX,
RIS (EndNote),
ReDIF
Handle: RePEc:oup:oxecpp:v:46:y:1994:i:0:p:857-68
Contact details of provider: Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK Fax: 01865 267 985 Email: Web page: http://oep.oupjournals.org/
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Related research
Keywords:
Cited by: (explanations, 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.)