Conte, Bruno; Desmet, Klaus; Rossi-Hansberg, Esteban - National Bureau of Economic Research - 2022
A unilateral carbon tax trades off the distortionary costs of taxation and the future gains from slowing down global … unfavorable to unilateral carbon taxes. We show that this logic breaks down in a world with trade and migration where economic … model (S-IAM), this paper predicts that a carbon tax introduced by the European Union (EU) and rebated locally can, if not …