Considering a differentiated mixed duopoly we show that when privatization and pollution tax are used together environmental damage will be non-monotone in the level of privatization, and optimal privatization is always partial privatization. Whether privatization will improve the environment or...

This chapter seeks to understand the linkages between non-environmental polices and the environment, with a particular focus on taxation and subsidies. In order to understand the quite complex literature on this subject, we draw on the theory of the second best and the theory of optimal...

The increase in global trade has contributed to the integration of domestic economies worldwide into a single global economy. Despite the welfare benefits from global trade, concerns remain regarding the impact of trade on the environment, particularly on global environmental threats like...

The world’s economy has changed radically in recent years, becoming much more integrated. This integration is particularly relevant in the generation and management of global public goods, and global environmental threats like greenhouse gases (GHG). In fact, despite the contribution of trade...

Carbon taxation is a regressive policy which contributes to public opposition towards same. We employ the Exact Affine Stone Index demand system to examine the extent to which carbon taxation in Ireland reduces emissions, as well as its distributional impacts. The Engel curves for various...

Since agriculture is responsible for a considerable share of anthropogenic greenhouse gas emissions (GHGE), this paper examines the impact of various carbon taxes designed to incentivize environmentally friendly food consumption patterns in four European countries: Finland, Italy, Sweden, and...

We assess distributive, macroeconomic, and CO2 emission impacts of CO2 tax schemes in Austria by applying the macroeconomic Input-Output model DYNK[AUT]. The tax schemes analysed focus primarily on CO2 emissions not covered by the European Emission Trading System (ETS), applying different CO2...

For any emission trading system (ETS) with quantity-based endogenous supply of allowances, there exists a negative demand shock, e.g. induced by abatement policy, that increases aggregate supply and thus cumulative emissions. We prove this green paradox for a general model and then apply it to...

For any emission trading system (ETS) with quantity-based endogenous supply of allowances, there exists a negative demand shock, e.g. induced by abatement policy, that increases aggregate supply and thus cumulative emissions. We prove this green paradox for a general model and then apply it to...

At what rate should a government price carbon emissions? This paper analyzes optimal carbon pricing while taking into account interactions with the taxation of labor and capital income. In an otherwise standard climate-economy model, the policy maker has to resort to a distortionary tax on labor...