This paper investigates pricing power, an important criterion for identifying sectors that would be vulnerable under environmental tax reform. Environmental tax reform, defined here as introduction of carbon taxes alongside reductions in labour taxes, could bear heavily on sectors that are...

David Pearce's Blueprint for a Green Economy, based on a report for the then Conservative UK government, encouraged a major change of government view to the effect that market-based policies "offer the prospect of a more efficient and flexible response to environmental issues". The policies he...