The Ricardian Equivalence Theorem establishes a set of conditions under which the form of finance of a public program … (tax or debt finance) has no effects on any substantive outcomes. Following Barro (1974), the theorem has typically been … of debt finance is offset by increased private saving. However, Ricardian equivalence can also be established in a …

largely leads to fiscal outlays. Policies may unduly favor public spending (on technological solutions to limit emissions, and … on adaptation), over policies that lead to more public revenue being raised (emissions charges). The pervasive … policies for mitigation of emissions, since agreement on and international enforcement of cooperative abatement policies are …