Found 9 article(s) for author 'Carbon Tax'

Carbon Tax Review and Updating: Institutionalizing an Act-Learn-Act Approach to U.S. Climate Policy

Carbon Tax Review and Updating: Institutionalizing an Act-Learn-Act Approach to U.S. Climate Policy. Joseph Aldy, 2019, Paper, “The design of climate change policy faces the challenge of several key uncertainties. First, the potential benefits of reducing carbon dioxide (CO2) and other greenhouse gas (GHG) emissions are characterized by an array of uncertainties related to long-term economic growth, climate sensitivity, the effectiveness of emissions mitigation policy, and the climate risk mitigation actions undertaken through adaptation and geoengineering (Interagency Working Group on the Social Cost of Carbon 2010; Greenstone, Kopits, and Wolverton 2013; Aldy 2015; Taylor 2015). Second, the potential costs of reducing emissions are characterized by uncertainties about the relative costs of low-carbon and carbon-intensive energy sources, technological innovation, consumer responsiveness to energy price changes, as well as the cost-effectiveness of policy design (Aldy et al. 2010). Third, the distributional consequences of climate change and climate policy responses are also characterized by uncertainty (Burtraw, Sweeney, and Walls 2009; Metcalf 2009; Rausch et al 2011; Carleton et al. 2018). Finally, the competitiveness impacts of emissions mitigation policy are uncertain and may vary with the relative stringency of policies around the world, transportation costs, and the energy intensity of manufacturing (Ederington, Levinson, and Minier 2005; Aldyand Pizer 2015; Aldy2017b).Link

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Carbon Taxes vs. Cap and Trade: Theory and Practice

Carbon Taxes vs. Cap and Trade: Theory and Practice. Robert Stavins, November 2019, Paper, “There is widespread agreement among economists – and a diverse set of other policy analysts – that, at least in the long run, an economy-wide carbon-pricing system will be an essential element of any national policy that can achieve meaningful reductions of CO2 emissions costeffectively in the United States and many other countries. There is less agreement, however, among economists and others in the policy community regarding the choice of specific carbon-pricing policy instrument, with some supporting carbon taxes and others favoring cap-and-trade mechanisms. How do the two major approaches to carbon pricing compare on relevant dimensions, including but not limited to efficiency, cost-effectiveness, and distributional equity? This paper addresses this question by drawing on theories of policy instrument choice pertaining to the attributes – or merits – of the instruments. The paper also draws on relevant empirical evidence. It concludes with a look at the path ahead.Link

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John Campbell on the Current Investing Environment, Asset Pricing, Stock Market Lessons from India, and Solutions for Financial Crises

John Campbell on the Current Investing Environment, Asset Pricing, Stock Market Lessons from India, and Solutions for Financial Crises September 2019. GrowthPolicy’s Devjani Roy interviewed John Y. Campbell, Morton L. and Carole S. Olshan Professor of Economics at Harvard University, on the current investing environment, asset pricing, stock market lessons from India, and solutions for […]

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Reviewing the Climate Crisis Town Hall

Reviewing the Climate Crisis Town Hall. Joseph Aldy, September 8, 2019, Audio, “Host Steve Curwood sits down with Joe Aldy, economist and Professor of Public Policy at the Harvard Kennedy School, to take a look at carbon pricing, a just transition for fossil fuel workers, and other key topics from the climate crisis town hall.Link

 

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China’s Emissions Trading System and an ETS-Carbon Tax Hybrid

China’s Emissions Trading System and an ETS-Carbon Tax Hybrid. Dale Jorgenson, April 29, 2019, Paper, “China is introducing a national carbon emission trading system (ETS), with details yet to be finalized. The ETS is expected to cover only the major emitters but it is often argued that a more comprehensive system will achieve the emission goals at lower cost. We first examine an ETS that covers both electricity and cement sectors and consider an ambitious cap starting in 2017 that will meet the official objective to reduce the carbon-GDP intensity by 60-65% by 2030 compared to 2005 levels. The two ETS-covered industries are compensated with an output-based subsidy to represent the intention to give free permits to the covered enterprises. We then consider a hybrid system where the non-ETS sectors pay a carbon tax and share in the CO2 reduction burden. Our simulations indicate that hybrid systems will achieve the same CO2 goals with lower permit prices and GDP losses. We also show how auctioning of the permits improves the efficiency of the ETS and the hybrid systems. Finally, we find that these CO2 control policies are progressive in that higher incomes households bear a bigger burden.Link

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The Economic Implications of a Low-Carbon Future

The Economic Implications of a Low-Carbon Future. Joseph Aldy, January 2019, Paper, “What are the costs and benefits of reducing the carbon intensity of the U.S. economy? The economic costs of decarbonization reflect the stringency of climate policy goals—how ambitious is the objective and how quickly must the economy meet it—and the responsiveness of investment and consumption to new policies and associated price signals. The more low-cost opportunities for switching to lower- and zero-carbon energy sources and the more options for energy efficiency and conservation, the lower the cost of any decarbonization goal. The costs will also reflect a number of critical policy design choices that will affect the cost-effectiveness of reducing carbon emissions, the creation and use of economic value (such as carbon tax revenues) that could promote economic growth, and the potential for innovation policy to complement emission mitigation policy.Link

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The Cost of Reducing Greenhouse Gas Emissions

The Cost of Reducing Greenhouse Gas Emissions, James Stock, August 2, 2018, Paper, “This paper reviews the cost of various interventions that reduce greenhouse gas emissions. As much as possible we focus on actual abatement costs (dollars per ton of carbon dioxide avoided), as measured by 50 economic studies of programs over the past decade, supplemented by our own calculations. We distinguish between static costs, which occur over the lifetime of the project, and dynamic costs, which incorporate spillovers. Interventions or policies that are expensive in a static sense can be inexpensive in a dynamic sense if they induce innovation and learning-by-doing.Link

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The Welfare Consequences of Taxing Carbon

The Welfare Consequences of Taxing Carbon. Dale Jorgenson, 2018, Paper, “We find CO2 emissions abatement to be invariant to the chosen recycling scheme. This means that policy makers need not compromise their environmental objectives when designing carbon tax swap options. We also find additional emissions reductions beyond the scope of coverage and points of taxation.Link

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Australia: Commodities and Competitiveness

Australia: Commodities and Competitiveness. Laura Alfaro, January 2014, Case. “For the past few decades, Australia has dealt with the benefits and costs of repeated mining booms—inflation, a housing bubble, a current account deficit and growing dependence on China. Between 1996 and 2007, however, Australia had most of these issues under control and grew at impressive rates, becoming one of the richest of developed countries. Yet competitiveness in its non-mining sectors declined. Since the financial crisis, additional challenges associated with climate change, minerals taxes…” May require purchase or user account. Link

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