Chapter 6: Pricing Climate Change
Burning of fossil fuel is the main reason behind manmade climate change. By burning the carbon content, carbon dioxide is produced and quickly spreads in the global atmosphere. This increases the greenhouse effect, thereby changing the earth’s energy balance. Concern over the negative consequences of climate change has led to a vast array of policy measures aimed at reducing the use of fossil fuel. This chapter examines some aspects of these policies. It discusses the arguments for taxes and quantity restrictions on CO2-emitting activities, and especially on the burning of fossil fuel, as well as policies to subsidise substitutes for these activities, particularly the use and development of technologies producing non-fossil based “green energy”.
Volume (Year): (2012)
Issue (Month): (02)
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- Golosov, Mikhail & Hassler, John & Krusell, Per & Tsyvinski, Aleh, 2011.
"Optimal taxes on fossil fuel in general equilibrium,"
CEPR Discussion Papers
8527, C.E.P.R. Discussion Papers.
- Mikhail Golosov & John Hassler & Per Krusell & Aleh Tsyvinski, 2014. "Optimal Taxes on Fossil Fuel in General Equilibrium," Econometrica, Econometric Society, vol. 82(1), pages 41-88, 01.
- Mikhail Golosov & John Hassler & Per Krusell & Aleh Tsyvinski, 2011. "Optimal Taxes on Fossil Fuel in General Equilibrium," NBER Working Papers 17348, National Bureau of Economic Research, Inc.
- Sinn, Hans-Werner, 2009. "The green paradox," Munich Reprints in Economics 19633, University of Munich, Department of Economics.
- Hans-Werner Sinn, 2009. "The Green Paradox," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 10(3), pages 10-13, October.
- Bretschger, Lucas & Ramer, Roger & Schwark, Florentine, 2011. "Growth effects of carbon policies: Applying a fully dynamic CGE model with heterogeneous capital," Resource and Energy Economics, Elsevier, vol. 33(4), pages 963-980.
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