Judged by the principle of intertemporal Pareto optimality, insecure property rights and the greenhouse effect both imply overly rapid extraction of fossil carbon resources. A gradual expansion of demand-reducing public policies – such as increasing ad-valorem taxes on carbon consumption or...

Over the last few decades, several instruments have evolved to deal with similar energy and environmental challenges. For instance, the economic literature prescribes separate tax or cap-and-trade systems to internalize negative environmental externalities and subsidies to internalize positive...

During the last decade, Norway has carried out an ambitious climate policy. The main policy tool is a relatively high carbon tax, which was implemented already in 1991. Data for the development in CO2 emissions since then provide a unique opportunity to evaluate carbon taxes as a policy tool. To...

The aim of this paper is to examine the impacts of a global carbon tax on fossil fuel markets. In particular, the effect on the Norwegian, as well as the global, petroleum wealth is studied. Most empirical models of fossil fuel markets either use an exogenous price path, or model the supply side...

This paper analyses the effects of a carbon tax on a small open petroleum producing economy, using an aggregate intertemporal general equilibrium model with differentiated products. The long run effects on welfare and capital accumulation of both a unilateral and an international carbon tax are...

One of the proposed alternatives to Kyoto’s cap-and-trade approach is a regime based on an internationally harmonized carbon tax. In this paper, we consider and compare the enforcement problems associated with a tax regime and a cap-and-trade regime, respectively. The paper tries to convey two...

This paper sheds light on the impact of alternative environmental policies on energy demand, global <InlineEquation ID="IEq1"> <EquationSource Format="TEX">$${ CO}_2$$</EquationSource> <EquationSource Format="MATHML"> <math xmlns:xlink="http://www.w3.org/1999/xlink"> <msub> <mrow> <mi>C</mi> <mi>O</mi> </mrow> <mn>2</mn> </msub> </math> </EquationSource> </InlineEquation> emissions, trade, and welfare. For this, we develop an Eaton–Kortum type general equilibrium model of international trade which includes an energy sector. We...</equationsource></equationsource></inlineequation>

China’s emissions continue to rise rapidly in line with its mounting energy consumption, which puts considerable pressure on China to meet its emission reduction commitments. This paper assesses the impacts of CO₂ mitigation measures in China during the period from 2010 to 2050 by using a...

This paper measures the response of bilateral trade flows to differences in industrial energy prices across countries. Using a panel for the period 1996-2011 including 42 countries, 62 sectors and covering 60% of global merchandise trade, we estimate the short-run effects of sector-level energy...

This paper measures the response of bilateral trade flows to differences in industrial energy prices across countries. Using a panel for the period 1996-2011 including 42 countries, 62 sectors and covering 60% of global merchandise trade, we estimate the short-run effects of sector-level energy...