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| Author: | Liski, M. Tahvonen, O. |
| Title: | Can carbon tax eat OPEC's rents? |
| Journal: | Journal of Environmental Economics and Management
2004 : JAN, VOL. 47:1, p. 1-12 |
| Index terms: | cartels energy environmental protection non-renewable resources pollution |
| Language: | eng |
| Abstract: | This article proposes the optimal emission tax for a stock pollutant when the pollutant flow is also regulated by a resource-exporting cartel. The authors consolidate, clarify and generalize a set of previous results to obtain clear isolation of the Pigouvian and trade-policy components of the tax. Because of the trade-policy component, the tax can shift more rents from the cartel than the pollution causes damage-related costs. This leads to the possibility that the pollution problem accompanied by the coordination of taxation can bring about net benefits at the expense of the cartel. |
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