Growth, renewables and the optimal carbon tax

Optimal climate policy is investigated in a Ramsey growth model of the global economy with exhaustible oil reserves, an infinitely elastic supply of renewables, stock-dependent oil extraction costs and convex climate damages. Four regimes can occur. If the initial social cost of oil is less than tha...

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Bibliographic Details
Main Authors: Van der Ploeg, R, Withagen, C
Format: Working paper
Published: University of Oxford 2010