van der Ploeg, Frederick - C.E.P.R. Discussion Papers - 2015
Unilateral second-best carbon taxes are analysed in a two-period, two-country model with international trade in final … cumulative emissions is strong enough. If the current carbon tax is too low, the second-best future carbon tax is set below the … first best to mitigate adverse Green Paradox effects. Unilateral second-best optimal carbon taxes exceed the first …