This paper develops a mechanism design approach to study externalities and re-distribution. The mechanism screens individuals’ social weights to strike a balance among broad distributional objectives, incentives to work, and incentives to reduce externalities. The welfare-optimal allocation...

Canada's federal carbon-pricing scheme and its subnational counterparts might not be sufficient to meet the target of net zero by 2050. In the meantime, carbon dioxide (CO2) emitters are allowed to profit by externalizing environmental costs and risks on to present and future taxpayers. When the...

This paper analyses the medium-term effects of a carbon tax on growth and CO2 emissions in Ireland, a small open economy. We find that a double dividend exists if the carbon tax revenue is recycled through reduced income taxes. If the revenue is recycled by giving a lump-sum transfer to...

A carbon tax can be central pillar of tax reform and sound fiscal policy. In India, still no tax is charged on the emission of carbon dioxide. Carbon tax could be used to replace individual tax and tax simplification and less government regulation. A carbon tax is also cheaper and often more...

At what rate should a government price carbon emissions? This paper analyzes optimal carbon pricing while taking into account interactions with the taxation of labor and capital income. In an otherwise standard climate-economy model, the policy maker has to resort to a distortionary tax on labor...