Carbon Tax and Investment in Low-Carbon Technology in a Model of Co-ordination Failure
We focus on the coordination failure among domestic firms in the investment of expensive low-carbon technology, which helps reduce the amount of carbon usage and pollution. In this model the firms are charged with a carbon tax only if the total stock of carbon emission in the environment exceeds a set carbon toleration level of the government. The carbon tax depends on the number of firms which have installed the low-carbon technology - the higher is the proportion of firms who do not invest in the technology, the higher will be the probability that firms being charged with carbon tax, and the higher will be the amount of tax.
|Date of creation:||15 Sep 2007|
|Date of revision:|
|Contact details of provider:|| Postal: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL|
Phone: 01334 462420
Fax: 01334 462444
Web page: http://www.st-andrews.ac.uk/economics/
More information through EDIRC
|Order Information:|| Email: |
When requesting a correction, please mention this item's handle: RePEc:san:wpecon:0705. 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: (the School of Economics)
If references are entirely missing, you can add them using this form.