Abstinence with Reputation Loss, Understating Expectations and Guiltand the Effectiveness of Emission Tax
AbstractThe responsibility for, and consequences of, greenhouse gas emissions are shared by all countries, but only a few are willing to tax emissions. The paper argues that the reactions of the abstaining countries are crucial for assessing the effectiveness of the tax. The paper analyzes an interaction between a tax-collecting and investing coalition of rich countries, abstaining rich countries and poor countries. The non-coalition countries might have loss of reputation and guilt and overstate the tax’s emission-moderating effect. As long as these three types of countries react to their counterparts’ emissions, taxing emissions does not necessarily reduce the global emissions.
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Bibliographic InfoPaper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number wp11-01.
Length: 12 pages
Date of creation: 2011
Date of revision:
Contact details of provider:
Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia
Phone: +612 4221-3659
Fax: +612 4221-3725
Web page: http://business.uow.edu.au/econ/index.html
More information through EDIRC
Emission Tax; Abstinence; Understating Expectations; Guilt; Global Emissions;
Other versions of this item:
- Amnon Levy, 2011. "Abstinence with Reputation Loss, Understating Expectations and Guiltand the Effectiveness of Emission Tax," Economics Working Papers wp11-12, School of Economics, University of Wollongong, NSW, Australia.
- Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
This paper has been announced in the following NEP Reports:
- NEP-ACC-2011-08-22 (Accounting & Auditing)
- NEP-ALL-2011-08-22 (All new papers)
- NEP-ENE-2011-08-22 (Energy Economics)
- NEP-ENV-2011-08-22 (Environmental Economics)
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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- Amnon Levy, 2011.
"A Stock Targeting International Carbon-Tax Rule with Uncertainty and Diminishing Compliance,"
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wp11-09, School of Economics, University of Wollongong, NSW, Australia.
- Amnon Levy, 2012. "A Stock Targeting International Carbon-Tax Rule with Uncertainty and Diminishing Compliance," Economics Working Papers wp12-09, School of Economics, University of Wollongong, NSW, Australia.
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