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...

Carbon taxes efficiently reduce greenhouse gas emissions but are criticized as regressive. This paper links dynamic overlapping-generation and microsimulation models of the United States to estimate the initial incidence. We find that while carbon taxes are regressive, the incidence depends much...

This paper11Thanks for excellent research assistance for this paper to Emmanuel Carlsson. Valuable comments from Francisco Alpizar, Ashokankur Datta and an anonymous referee are gratefully acknowledged as is financial support from the Swedish International Development Cooperation Agency (Sida)...