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Can a Small Nation Gain? From Introducing a Carbon Tac Early

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  • Lund, D.

Abstract

Carbon dioxide emissions may cause global warming. But own emissions have negligible effects for a small nation, which may thus regard carbon taxes as distortionary. Such taxes may have other effects, however. When research and development (R&D) has positive external effects, carbon taxes may correct for some of these, by giving incentives for R&D in particular directions. This may be beneficial when the nation faces a binding international agreement on reducing emissions in a future period. This effect is analysed, both for a case with a carbon tax alone, and for two different cases with R&D subsidies as well. Finally, a different international agreement is considered, under which the tax revenue is collected domestically.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Lund, D., 1993. "Can a Small Nation Gain? From Introducing a Carbon Tac Early," Memorandum 1993_015, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:1993_015
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    Cited by:

    1. Storrøsten, Halvor Briseid, 2015. "Prices vs. quantities with endogenous cost structure and optimal policy," Resource and Energy Economics, Elsevier, vol. 41(C), pages 143-163.
    2. Greaker, Mads & Rosendahl, Knut Einar, 2008. "Environmental policy with upstream pollution abatement technology firms," Journal of Environmental Economics and Management, Elsevier, vol. 56(3), pages 246-259, November.

    More about this item

    Keywords

    air pollution ; taxes ; research and development;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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