Global Carbon Cycle and the Optimal Time Path of a Carbon Tax
The existing models of fossil fuel consumption with carbon accumulation imply that the optimal time path of carbon tax is either hump-shaped or monotonically decreasing. These models specify the decay of atmospheric carbon as a constant rate of total concentration. The authors extend this specification to more accurately reflect the global carbon cycle models of climatologists and show that this extension changes the basic economic properties of the optimal carbon tax. Their analysis reveals that the optimal carbon tax may as well be constant through time, increase monotonically, or have a U-shape. In addition, optimal resource extraction may have an open-close-open cycle. Copyright 1996 by Royal Economic Society.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. 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): 48 (1996)
Issue (Month): 4 (October)
|Contact details of provider:|| Postal: |
Fax: 01865 267 985
Web page: http://oep.oupjournals.org/Email:
|Order Information:||Web: http://www.oup.co.uk/journals|
When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:48:y:1996:i:4:p:515-36. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.