Carbon Tax

(redirected from Optimal carbon tax)
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A proposed tax that would be levied against high consumers of heating oil, gasoline, electricity, etc., in an effort to reduce the emission of greenhouse gases
References in periodicals archive ?
Thus far, I have focused on technical criticisms of Nordhaus's calculation of the optimal carbon tax profile.
The 2007 DICE model contains simulations not just of the baseline (no controls) and the optimal carbon tax scenarios, but of many other policies as well.
The optimal carbon tax is the best policy for two related reasons: first, it is calibrated to balance marginal abatement costs against marginal benefits from avoided climatic damage; second, it uses a very flexible tool (namely, time-varying penalties on carbon use) that can be perfectly correlated (in the DICE model, at least) with the level of damages inflicted on the world.
Notice that this conclusion does not necessarily mean that the optimal carbon tax in the participating countries will be 250 percent higher relative to the full-participation scenario.
Yes, in principle, Nordhaus's optimal carbon tax might be repealed in 2068 if a bioengineering solution presents itself or if a commercially viable nonfossil fuel is developed, and proponents of a carbon tax argue that uncertainty about the future should not prevent us from always adopting what appears to be the best option at present.
Using (17a) in (8) and (9), the constant time paths of the shadow costs of the carbon stocks and the optimal carbon tax are
Thus, in this special case the optimal carbon tax will be constant and at a level which can easily be calculated from the known initial values of the parameters.
This lowers the level of optimal carbon tax which in turn gives rise to the possibility of a second period of optimal fossil fuel consumption.
Together these findings show that the basic properties of resource extraction, and optimal carbon tax in particular, are rather sensitive to the submodel describing the accumulation of atmospheric [CO.
For example, William Nordhaus calculates that the optimal carbon tax as of 2015 would be about $35 per ton.
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