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Global Effects of the European Carbon Tax


  • Giuseppe Nicoletti


  • Joaquim Oliveira Martins



The aim of this paper is to analyse the implications of the European Commission proposal of a mixed energy cum carbon tax to curb CO2 emissions from a global perspective. The paper deals with the effects of this proposal on emissions and welfare in both the EC and the rest of the world by concentrating on three main issues: i) the effectiveness of the proposed tax measures in terms of curbing EC and global CO2 emissions; ii) the implied costs for the EC and the other countries/regions of the world; and iii) the implications of the EC proposal for the world distribution of emissions and the competitiveness of the EC economy. In this connection, the relevance of the so-called "carbon leakages" -- i.e. the displacement of polluting activities from countries participating in an emission reduction agreement to countries not concerned by the agreement -- is examined. The paper provides quantitative answers to these issues using simulations with GREEN, the global dynamic applied general ... L'objet de cette étude est d'analyser d'une point de vue global les effets de la proposition de la Commission Européenne d'une taxe mixte sur l'énergie et le contenu en carbone, pour réduire les émissions de CO2. Les effets de cette proposition sur les émissions et le bien-être collectif de la CEE et du reste du monde sont abordés selon trois perspectives : i) l'impact des mesures fiscales proposées sur les émissions globales et celles de la CEE ; ii) les coûts induits pour la CEE et les autres pays/régions du monde ; et iii) les effets de cette proposition de la Commission sur la répartition des émissions dans le monde et sur la compétitivité de l'économie européenne. A ce titre, la pertinence des prétendues "fuites de carbone" -- i.e. le déplacement des activités polluants de pays signataires d'un accord de réduction des émissions vers des pays non concernés par cet accord, est examinée. Cette étude propose des réponses quantifiées à ces questions au moyen de simulations ...

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  • Giuseppe Nicoletti & Joaquim Oliveira Martins, 1992. "Global Effects of the European Carbon Tax," OECD Economics Department Working Papers 125, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:125-en

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    Cited by:

    1. John P. Weyant, 1993. "Costs of Reducing Global Carbon Emissions," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 27-46, Fall.
    2. Bossier, Francis & Brechet, Thierry, 1995. "A fiscal reform for increasing employment and mitigating CO2 emissions in Europe," Energy Policy, Elsevier, vol. 23(9), pages 789-798, September.
    3. repec:fpb:wpaper:76 is not listed on IDEAS
    4. R.A. McDougall, 1993. "Energy Taxes and Greenhouse Gas Emissions in Australia," Centre of Policy Studies/IMPACT Centre Working Papers g-104, Victoria University, Centre of Policy Studies/IMPACT Centre.
    5. Francis Bossier & Thierry Bréchet & Nadine Gouzée & Sophie Mertens & Stéphane Willems, 1995. "Planning Paper 76 - Politiques et mesures destinées à modifier les tendances des émissions anthropiques de gaz à effet de serre en Belgique," Planning Papers 76, Federal Planning Bureau, Belgium.
    6. Klepper, Gernot & Lorz, Jens Oliver & Stähler, Frank & Thiele, Rainer & Wiebelt, Manfred, 1993. "Empirische allgemeine Gleichgewichts-Modelle: Struktur und Anwendungsmöglichkeiten," Kiel Working Papers 595, Kiel Institute for the World Economy (IfW).

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