Brock, William; Engstrom, Gustav; Xepapadeas, Anastasios - Fondazione ENI Enrico Mattei (FEEM) - 2012
equilibrium. We define optimal taxes on fossil fuels and profit taxes on firms that extract fossil fuels. Our results suggest that … if the implementation of international transfers across latitudes is not possible, then optimal taxes are spatially non … homogeneous and tend to be lower at the poor latitudes. The degree of spatial differentiation of optimal taxes depend on heat …