Distributional effects of taxing transport fuel

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This paper takes as its starting point the observation that fuel prices – and thus taxes – are important for good management of climate change and other environmental problems. To economists this should be no surprise yet it seems that the role of fuel taxation as an instrument of climate policy has not been fully appreciated. It is however one of the few policy instruments that, since several decades, has actually reduced fuel consumption appreciably.

Climate Change, Policy Design

Taxes, permits and costly policy response to technological change

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In this paper, we analyze the effects of the choice of price (taxes) versus quantity (tradable permits) instruments on the policy response to technological change. We show that if policy responses incur transactional and political adjustment costs, environmental targets are less likely to be adjusted under tradable permits than under emission taxes. This implies that the total level of abatement over time might remain unchanged under tradable permits while it will increase under emission taxes.

 

Climate Change, Policy Design

The future of oil in a carbon constrained world

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Global climate is changing. This fact is supported by robust scientific evidence, and there is no real doubt that the main reason is the increased concentration of greenhouse gases in the atmosphere caused by human activity, primarily related to the combustion of fossil fuels.

Climate Change

Fuel Taxes and the Poor

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Fuel Taxes and the Poor challenges the conventional wisdom that gasoline taxation, an important and much-debated instrument of climate policy, has a disproportionately detrimental effect on poor people.

Fuel Taxes and the Poor, The Distributional Effects of Gasoline Taxation and Their Implications for Climate Policy. Edited By Thomas Sterner. Published by RFF Press with Environment for Development initiative.

Climate Change, Policy Design

Should we tax or let firms trade emissions? An experimental analysis with policy implications for developing countries

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In this paper we use laboratory experiments to test the theoretical predictions derived by Villegas-Palacio and Coria (2010) about the effects of the interaction between technology adoption and incomplete enforcement. They show that under Tradable Emissions Permits (TEPs), and in contrast to taxes, the fall in permit price produced by adoption of environmentally friendly technologies reduces the benefits of violating the environmental regulation at the margin and leads firms to improve their compliance behavior.

Climate Change, Policy Design

Attitudes to Personal Carbon Allowances

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A personal carbon allowance (PCA) scheme targets emissions from individual consumption and allocates allowances directly to individuals by dividing the carbon budget on a per capita basis. In this study we analyse the results of a survey sent out to a representative sample of the Swedish population regarding attitudes to a potential PCA scheme.

Climate Change, Policy Design

Meteorologists Meeting Rainmakers:Indigenous Knowledge and Climate Policy Processes in Kenya

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This article seeks to shed light on policy processes arising from interaction between indigenous rainmakers and meteorologists, in participatory action research aimed at increasing the capacity of a local community to adapt to climate change.

Climate Change