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Climate Effects of Carbon Taxes, Taking into Account Possible Other Future Climate Measures

  • Habermacher, Florian

    ()

  • Kirchgässner, Gebhard

    ()

Increasing fuel extraction costs and global temperatures make it likely that in the medium-term future, technological or political measures against global warming will be implemented. In assessments of current climate policy, possible medium-term future developments, such as backstop technologies, are largely neglected, but such developments may crucially affect policy impacts. If such measures are implemented, a carbon tax introduced now may mitigate climate change to greater effect than recent reflections along the lines of the Green Paradox would suggest. Notably, the weak and the strong version of the Green Paradox, related to current and longer-term emissions, may not materialise. Moreover, the tax may allow the demanding countries to extract part of the resource rent, further increasing its desirability.

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File URL: http://www1.vwa.unisg.ch/RePEc/usg/econwp/EWP-1110.pdf
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Paper provided by University of St. Gallen, School of Economics and Political Science in its series Economics Working Paper Series with number 1110.

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Length: 36 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:usg:econwp:2011:10
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  1. Reyer Gerlagh, 2010. "Too Much Oil," Working Papers 2010.14, Fondazione Eni Enrico Mattei.
  2. Liski, Matti & Tahvonen, Olli, 2004. "Can carbon tax eat OPEC's rents?," Journal of Environmental Economics and Management, Elsevier, vol. 47(1), pages 1-12, January.
  3. Rick van der Ploeg & Cees Withagen, 2010. "Is There Really a Green Paradox?," OxCarre Working Papers 035, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  4. Rémy Dullieux & Lionel Ragot & Katheline Schubert, 2011. "Carbon Tax and OPEC’s Rents Under a Ceiling Constraint," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(4), pages 798-824, December.
  5. Hoel, Michael, 2011. "Is there a green paradox?," Memorandum 13/2010, Oslo University, Department of Economics.
  6. Hans-Werner Sinn, 2008. "Public policies against global warming: a supply side approach," International Tax and Public Finance, Springer, vol. 15(4), pages 360-394, August.
  7. van der Ploeg, Frederick & Withagen, Cees, 2012. "Too much coal, too little oil," Journal of Public Economics, Elsevier, vol. 96(1), pages 62-77.
  8. Pearce, David W, 1991. "The Role of Carbon Taxes in Adjusting to Global Warming," Economic Journal, Royal Economic Society, vol. 101(407), pages 938-48, July.
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