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Taxing Carbon under Market Incompleteness

Author

Listed:
  • Valentina Bosetti

    (Università Commerciale “L. Bocconi”, IGIER and FEEM)

  • Marco Maffezzoli

    (Università Commerciale “L. Bocconi” and IGIER)

Abstract

This paper is the first attempt, to the best of our knowledge, to study the impact of a carbon tax by means of a heterogeneous agents model. The objectives of the paper are two: i) To assess how the results of a representative agent model compare to those coming from a model accounting for heterogeneity across agents when evaluating aggregate economic and environmental impacts of a carbon tax; ii) To assess the distributional implications of a carbon tax (and equivalent cap) and how they can be mitigated through different recycling schemes or allocations.

Suggested Citation

  • Valentina Bosetti & Marco Maffezzoli, 2013. "Taxing Carbon under Market Incompleteness," Working Papers 2013.72, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2013.72
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    Cited by:

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    2. Lamperti, F. & Dosi, G. & Napoletano, M. & Roventini, A. & Sapio, A., 2018. "Faraway, So Close: Coupled Climate and Economic Dynamics in an Agent-based Integrated Assessment Model," Ecological Economics, Elsevier, vol. 150(C), pages 315-339.
    3. repec:hal:spmain:info:hdl:2441/1nlv566svi86iqtetenms15tc4 is not listed on IDEAS
    4. Münnich Vass, Miriam, 2017. "Renewable energies cannot compete with forest carbon sequestration to cost-efficiently meet the EU carbon target for 2050," Renewable Energy, Elsevier, vol. 107(C), pages 164-180.
    5. Malafry, Laurence & Brinca, Pedro, 2022. "Climate policy in an unequal world: Assessing the cost of risk on vulnerable households," Ecological Economics, Elsevier, vol. 194(C).
    6. repec:hal:spmain:info:hdl:2441/4hs7liq1f49gh9chdf7r17gam6 is not listed on IDEAS
    7. repec:hal:spmain:info:hdl:2441/5qr7f0k4sk8rbq4do5u6v70rm0 is not listed on IDEAS

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    More about this item

    Keywords

    Carbon Tax; Double Dividend; Heterogeneous Agents Model;
    All these keywords.

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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