search query: @indexterm taxation / total: 1872
reference: 331 / 1872
| Author: | Liski, Matti |
| Title: | Taxing average emissions to overcome the shutdown problem |
| Journal: | Journal of Public Economics
2002 : SEP, VOL. 85:3, p. 363-384 |
| Index terms: | Pollution Taxation |
| Language: | eng |
| Abstract: | The paper shows that the optimal regulation of stock pollutants can require fluctuating emissions even in the absence of uncertainty. The optimum cannot be implemented by the usual Pigouvian flow tax since it leads to shutdown problem. A remedy for the promlem is to use tax schedules depending on cumulative emissions over time. A calibration using cost estimates of greenhouse gases suggests that potential gains from fluctuating carbon emissions are considerable. |
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