Böhringer, Christoph; Rosendahl, Knut Einar; … - 2019
analytically that in a situation with an ETS combined with OBA, it is optimal to impose a consumption tax on the goods that are … consumption tax on top of its existing ETS with OBA. We run Monte Carlo simulations to account for uncertain leakage exposure of … goods entitled to OBA. The consumption tax increases welfare whether the goods are highly exposed to leakage or not, and can …