IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Carbon Taxation When Climate Affects Productivity

Registered author(s):

    Optimal carbon taxation is evaluated in a model where climate change affects productivity. With a numerical US economy model with preexisting taxes, the optimal carbon tax is found to exceed marginal social damage by 53 percent and "marginal private damage" (the sum of households?marginal willingness to pay) by 73 percent. The welfare gain from optimal carbon taxation is estimated at $3.58 billion per year when marginal damages are $40/ton; employment also increases. Setting the carbon tax at the Pigouvian rate raises welfare by only $3.17 billion. The contrasting results in the “tax interaction" literature are due to the use of “marginal private damage" when applied to amenity externalities.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Paper provided by Department of Economics, Williams College in its series Department of Economics Working Papers with number 2001-15.

    as
    in new window

    Length:
    Date of creation: Mar 2001
    Date of revision:
    Handle: RePEc:wil:wileco:2001-15
    Note: full text not available
    Contact details of provider: Postal: Williamstown, MA 01267
    Phone: 413 597 2476
    Fax: 413 597 4045
    Web page: http://econ.williams.eduEmail:


    More information through EDIRC

    Order Information: Email:


    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wil:wileco:2001-15. 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: (Stephen Sheppard)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.