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Equivalence entre taxation et permis d'émission échangeables


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  • Pierre Villa
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    The paper deals with the equivalence between taxation and emission permits according to different viewpoints: the first one sets prices, the second one quantities. But equivalence is more formal than substantial: taxation is the generating fact, the market of permits does not exist spontaneously. Its price is unstable because supply is not independent from demand. It is manipulatable either ex ante when free allowances are allocated or ex post during the period of compliance through Walrasian tatonnement. A real economic determination of prices exists only when there are unit taxes or penalties on emissions exceeding the quotas. In order to avoid these drawbacks, pay-as-bid auctions must be used and free allowances avoided. Taxation or the price of emission permits are the real option value of changing techniques. An assignment rule is proposed : taxes are assigned to reduce average emissions and permits to reduce marginal emissions. In order to transform the cost into a real change of techniques, it is necessary to finance the sector of research and development of an amount greater than the taxes levied on pollution, which serve at paying the rent of innovation. These extra subsidies are used to move factors of production as capital from industry towards the innovation sector. The tax equivalence is ternary and concerns the taxes on pollution, capital and energy, because extracting fossil fuels is similar as innovation. Decentralization through market schemes induces that depollution has a marketable cost.

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    Bibliographic Info

    Paper provided by CEPII research center in its series Working Papers with number 2009-05.

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    Date of creation: Mar 2009
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    Handle: RePEc:cii:cepidt:2009-05

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    1. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 30(2), pages 675-740, June.
    2. Sophie Chauvin & Pierre Villa, 2003. "Le Currency Board à travers l'expérience de l'Argentine," Working Papers, CEPII research center 2003-07, CEPII research center.
    3. Sterdyniak H & Villa Pierre, 1984. "Des conséquences conjoncturelles de la régulation monétaire," CEPREMAP Working Papers (Couverture Orange) 8410, CEPREMAP.
    4. Schleich, Joachim & Ehrhart, Karl-Martin & Hoppe, Christian & Seifert, Stefan, 2006. "Banning banking in EU emissions trading?," Energy Policy, Elsevier, Elsevier, vol. 34(1), pages 112-120, January.
    5. Coase, R H, 1974. "The Lighthouse in Economics," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 17(2), pages 357-76, October.
    6. Philippe Quirion, 2007. "Comment faut-il distribuer les quotas échangeables de gaz à effet de serre ?," Post-Print, HAL hal-00639723, HAL.
    7. Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey,Elizabeth M., 2000. "Markets for Clean Air," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521660839.
    8. Nordhaus, William D, 1991. "A Sketch of the Economics of the Greenhouse Effect," American Economic Review, American Economic Association, American Economic Association, vol. 81(2), pages 146-50, May.
    9. Eloi Laurent & Jacques Le Cacheux, 2007. "'Grenelle de l'environnement ' : peut-on se passer d'une nouvelle fiscalité écologique ?," Sciences Po publications info:hdl:2441/2101, Sciences Po.
    10. repec:mop:credwp:04.10.51 is not listed on IDEAS
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