English
 
Privacy Policy Disclaimer
  Advanced SearchBrowse

Item

ITEM ACTIONSEXPORT
 
 
DownloadE-Mail
  Why finance ministers favor carbon taxes, even if they do not take climate change into account

Franks, R. M., Edenhofer, O., Lessmann, K. (2017): Why finance ministers favor carbon taxes, even if they do not take climate change into account. - Environmental and Resource Economics, 68, 3, 445-472.
https://doi.org/10.1007/s10640-015-9982-1

Item is

Files

show Files
hide Files
:
6960oa.pdf (Postprint), 2MB
Name:
6960oa.pdf
Description:
-
Visibility:
Public
MIME-Type / Checksum:
application/pdf / [MD5]
Technical Metadata:
Copyright Date:
-
Copyright Info:
-
License:
-

Locators

show

Creators

show
hide
 Creators:
Franks, R. Maximilian1, Author              
Edenhofer, Ottmar1, Author              
Lessmann, Kai1, Author              
Affiliations:
1Potsdam Institute for Climate Impact Research, ou_persistent13              

Content

show
hide
Free keywords: -
 Abstract: Fiscal considerations may shift governmental priorities away from environmental concerns: finance ministers face strong demand for public expenditures such as infrastructure investments but they are constrained by international tax competition. We develop a multi-region model of tax competition and resource extraction to assess the fiscal incentive of imposing a tax on carbon rather than on capital. We explicitly model international capital and resource markets, as well as intertemporal capital accumulation and resource extraction. While fossil resources give rise to scarcity rents, capital does not. With carbon taxes, the rents can be captured and invested in infrastructure, which leads to higher welfare than under capital taxation. This result holds even without modeling environmental damages. It is robust under a variation of the behavioral assumptions of resource importers to coordinate their actions, and a resource exporter’s ability to counteract carbon policies. Further, no green paradox occurs—instead, the carbon tax constitutes a viable green policy, since it postpones extraction and reduces cumulative emissions.

Details

show
hide
Language(s):
 Dates: 2017
 Publication Status: Finally published
 Pages: -
 Publishing info: -
 Table of Contents: -
 Rev. Type: Peer
 Identifiers: DOI: 10.1007/s10640-015-9982-1
PIKDOMAIN: Sustainable Solutions - Research Domain III
eDoc: 6960
Research topic keyword: Carbon Pricing
Research topic keyword: Climate Policy
Research topic keyword: Economics
Model / method: PRIDE
Organisational keyword: RD3 - Transformation Pathways
Organisational keyword: FutureLab - Public Economics and Climate Finance
Organisational keyword: Director Edenhofer
 Degree: -

Event

show

Legal Case

show

Project information

show

Source 1

show
hide
Title: Environmental and Resource Economics
Source Genre: Journal, SCI, Scopus
 Creator(s):
Affiliations:
Publ. Info: -
Pages: - Volume / Issue: 68 (3) Sequence Number: - Start / End Page: 445 - 472 Identifier: Other: Springer Science+Business Media B.V.
Other: 1573-1502
ISSN: 0924-6460
CoNE: https://publications.pik-potsdam.de/cone/journals/resource/environmental-resource-economics