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Full-Text Articles in Social and Behavioral Sciences
Cost E#11;Ffectiveness Of Unilateral Carbon Policy, Kathy Baylis, Don Fullerton, Daniel H. Karney
Cost E#11;Ffectiveness Of Unilateral Carbon Policy, Kathy Baylis, Don Fullerton, Daniel H. Karney
Daniel H Karney
This paper makes several contributions. First, we demonstrate the generality of the Fullerton, Karney, and Baylis (2012) model by showing cases where leakage can exceed 100 percent. We solve for conditions under which total emissions increase or decrease. We also solve for welfare effects, and for “cost effectiveness” (the additional welfare cost per ton of net abatement). And we explore the relationship between the sign of leakage and the sign of the effect on welfare.
Multiple Pollutants, Unovered Sectors, And Suboptimal Environmental Policies, Daniel Karney, Don Fullerton
Multiple Pollutants, Unovered Sectors, And Suboptimal Environmental Policies, Daniel Karney, Don Fullerton
Daniel H Karney
In our analytical general equilibrium model where two polluting inputs can be substitutes or complements in production, we study the effects of a tax on one pollutant in two cases: one where both pollutants face taxes and the second where the other pollutant is subject to a permit policy. In each case, we solve for closed-form solutions that highlight important parameters. We demonstrate two important ways that environmental taxes and permits are not equivalent. First, the change in the pollutant facing a tax increase depends on whether the other pollutant is subject to a tax or permit policy. Second, if …