The precautionary principle requires that we take additional actions to prevent harms when the harms from an activity are uncertain and possibly irreversible. This paper considers whether environmental or other Pigouvian taxes should similarly be precautionary. Should environmental taxes be set...

This paper considers whether environmental taxes should be accelerated (or delayed) if the environmental harm from pollution is uncertain and irreversible, and where we are likely to learn more about the nature of the harm or about mitigation technologies in the future. It concludes that...

This paper considers whether environmental taxes should be accelerated (or delayed) if the environmental harm from pollution is uncertain and irreversible, and where we are likely to learn more about the nature of the harm or about mitigation technologies in the future. It concludes that...

In a Ramsey policy regime, heterogeneity in beliefs about the potential costs of climate change is shown to produce policy ambiguities that alter carbon prices and taxation. Three sources of ambiguity are considered: (i) the private sector is skeptical, with beliefs that are unknown to the...