Second-best carbon taxation in the global economy: the green paradox and carbon leakage revisited
Acceleration of global warming resulting from a future carbon tax is large if the price elasticities of oil demand are large and that of oil supply is small. The fall in the world interest rate weakens this weak Green Paradox effect, especially if intertemporal substitution is weak. Still, social da...
Main Author: | Van der Ploeg, R |
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Format: | Working paper |
Published: |
University of Oxford
2015
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