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Role of carbon taxes in adjusting to global warming.

By:

Pearce, David

Material type: Text

TextPublication details: 1991Action note:

3/7/00 M2LMGR

Summary: Argues that notwithstanding the dispute over possible effects, a fairly aggressive policy stance is merited and carbon taxes have a number of features to commend them. In particular they do not distort incentives, and by generating revenue they facilitate reductions in other incentive-distorting taxes. The disadvantages of the carbon tax are not seen as being so serious as to rule out the tax as an option.

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Argues that notwithstanding the dispute over possible effects, a fairly aggressive policy stance is merited and carbon taxes have a number of features to commend them. In particular they do not distort incentives, and by generating revenue they facilitate reductions in other incentive-distorting taxes. The disadvantages of the carbon tax are not seen as being so serious as to rule out the tax as an option.

3/7/00 M2LMGR

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