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This paper examines how income inequality can affect the polarization of heterogeneous party platforms on climate … preferred redistribution. A static gametheoretic model of two-dimensional political competition on a carbon tax (with … distributional implications) and an income tax is combined with a model of a carbonintensive economy. For a higher inequality of pre …
Persistent link: https://www.econbiz.de/10012137387
carbon emission reduction than redistribution (inequality reduction by transfers). However, those countries who contribute …This study investigates the relationship between distinct types of inequality and CO2 emissions using panel data on 156 … that pre-distribution (inequality reduction by structural changes and social protection) is better aligned with the goal of …
Persistent link: https://www.econbiz.de/10014556641
-efficient households if and only if social inequality aversion is sufficiently high. We further find that redistribution of carbon tax …We develop a model of optimal carbon taxation and redistribution taking into account horizontal equity concerns by … problems, but increase mitigation costs by around 15 percent compared to the first-best for unity inequality aversion. Adding …
Persistent link: https://www.econbiz.de/10012485343
Given that the carbon price in the EU Emissions Trading System is only around 5€/tCO2 while consensus about a more stringent EU climate policy is very unlikely in the near future, we explore the potential scope and optimal design of additional national climate policies in the current EU policy...
Persistent link: https://www.econbiz.de/10011546601
In the absence of a global carbon price, many individual countries set up policies to incentivize specific abatement interventions. In turn, minimizing compliance cost requires policy-makers to identify interventions that are worth pursuing. With this in mind, the objective of this paper is to...
Persistent link: https://www.econbiz.de/10012163130
Economic thought on climate policy as an instance of environmental regulation is strongly influenced by the principle of a uniform carbon price. Economists acknowledge that this principle breaks down in a second-best world with other distortions, such as taxes and market power in domestic and...
Persistent link: https://www.econbiz.de/10010343780
This paper studies the cost effectiveness of climate policy if there are technology externalities. For this purpose, we develop a forward-looking CGE model that captures empirical links between CO2 emissions associated with energy use, directed technical change and the economy. We find the...
Persistent link: https://www.econbiz.de/10012734148
The good intentions of COP21 are to be reached by novel climate policy instrumentation, beyond what has been developed till now. For the long term two fundamentally different strategies emerge, each leading to a set of instruments fit for the challenging task in principle. The first has a...
Persistent link: https://www.econbiz.de/10013009967
We analyse the optimal design of unilateral climate policy in an open economy where the government is committed to a target for reduction of domestic CO2 emissions but where it is also concerned about carbon leakage. We highlight the importance of distinguishing between leakage at the extensive...
Persistent link: https://www.econbiz.de/10012597667
We analyze how a country pursuing a unilateral climate policy may contribute to a reduction in global CO2 emissions in a cost-effective way. To do so its system of energy taxes and subsidies must account for leakage of emissions from the domestic to the foreign economy. We focus on leakage...
Persistent link: https://www.econbiz.de/10012118585