Coase, Hotelling and Pigou: The Incidence of a Carbon Tax and CO₂ Emissions / Geoffrey Heal, Wolfram Schlenker.

Format:

Book

Author/Creator:

Heal, Geoffrey.

Contributor:

National Bureau of Economic Research.

Schlenker, Wolfram.

Series:

Working Paper Series (National Bureau of Economic Research) no. w26086.

NBER working paper series no. w26086

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Coase, Hotelling and Pigou

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2019.

Summary:

We use field-level cost estimates of all oil and natural gas fields to highlight dynamic aspects of a global carbon tax. Some of the initial reduction in consumption will be offset through higher consumption later on. Only high-cost reserves will be priced out of the market, e.g., at 200 dollars per ton of CO₂ cumulative emissions decrease by 4%. The tax incidence initially falls on consumers under a constant tax but eventually becomes negative as the lifetime of the resources is extended. An increasing tax over time reduces the initial incidence on consumers.

Notes:

Print version record

July 2019.