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Douenne and Fabre (2022) implement a representative survey following the Yellow Vests movement in France that started in opposition to the carbon tax in 2018, They find that a majority of French citizens would oppose a carbon tax and dividend program with proceeds paid equally to each adult, The...
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This paper studies optimal fiscal policy in a climate economy model with heterogeneous agents and distortionary taxes on labor and capital income. We derive optimal tax rules and show how they are modified relative to first-best and relative to the case without heterogeneity. We also explore...
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An original method to find the shape of favored redistributions is presented, which is in turn used to assess the political acceptability of the optimal tax theory. Two surveys have been conducted in 2016 to quantify French preferences for income redistribution. In the first survey, respondents...
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I intend to include a consideration apparently omitted by the optimal tax theory, at least as exposed in the seminal paper [#Saez2001]: demand side. Indeed, according to Keynesianism, as the marginal propensity to save of rich households is significantly above that of poor ones, a redistribution...
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Lemoine and Rudik (2017) argue that it is efficient to delay reducing carbon emissions, because there is substantial inertia in the climate system. However, this conclusion rests upon misunderstanding the relevant climate physics: there is no substantial lag between CO2 emissions and warming,...
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