Despite widespread agreement that a carbon tax would be more efficient, many countries use fuel economy standards to reduce transportation-related carbon dioxide emissions. We pair a simple model of the automakers' profit maximization problem with unusually-rich nationally representative data on...

Despite widespread agreement that a carbon tax would be more efficient, many countries use fuel economy standards to reduce transportation-related carbon dioxide emissions. We pair a simple model of the automakers' profit maximization problem with unusually-rich nationally representative data on...

The policy instruments for emissions reductions will be an integral part of a Post Kyoto Climate Regime. In this paper we compare a harmonized international carbon tax to a cap and trade system with different allocation rules for the emission caps. The caps are based either on the requirement...

A fundamental and highly relevant question for climate policy design is whether price controls, such as CO2 taxes, or quantity restrictions, such as emission quotas, should be preferred. This paper shows that as the reach of climate policies is limited either geographically or in terms of...

Road transport is vital to Australia's economy in terms of moving people and goods. Despite this, road transport activities pose a substantial challenge for Australia in terms of climate change: making a sizeable and growing contribution to Australia's annual greenhouse gas emissions. However,...