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Carbon Taxes: Their Macroeconomic Effects and Prospects for Global Adoption - A Survey of the literature

Author

Listed:
  • Cuervo Javier
  • Gandhi, Ved P.

Abstract

The carbon tax is a major instrument for curbing greenhouse gas emissions that cause global warning. Y et its adoption has been limited because of concerns over its effects on economic growth, income distribution, and international competitiveness. The paper shows that policymakers con minimize the effects of the tax on economic growth thorugh an efficient recycling of tax revenues and on equity through the adoption of appropriate mitigatinf or compensationg measures. To eliminate the worry about the loss of competitiveness, the paper suggests and international agreement on a coordinated adoption of the tax.

Suggested Citation

  • Cuervo Javier & Gandhi, Ved P., 1999. "Carbon Taxes: Their Macroeconomic Effects and Prospects for Global Adoption - A Survey of the literature," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, March.
    • Handle: RePEc:col:000090:007447
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    File URL: http://economia.uniandes.edu.co/revistadys/Articulo43_4.pdf
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    Keywords

    Trade; tax;

    JEL classification:

    • F1 - International Economics - - Trade

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