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Tax distortions and global climate policy

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dc.contributor Babiker, Mustafa H.M.
dc.contributor Metcalf, Gilbert E.
dc.contributor Reilly, John M.
dc.date 2003-10-24T14:55:45Z
dc.date 2003-10-24T14:55:45Z
dc.date 2002-05
dc.date.accessioned 2013-10-09T02:31:04Z
dc.date.available 2013-10-09T02:31:04Z
dc.date.issued 2013-10-09
dc.identifier no. 85
dc.identifier http://mit.edu/globalchange/www/abstracts.html#a85
dc.identifier http://hdl.handle.net/1721.1/3559
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/1721
dc.description We consider the efficiency implications of policies to reduce global carbon emissions in a world with pre-existing tax distortions. We first show that the weak double dividend, the proposition that the welfare improvement from a tax reform where environme ntal taxes are used to lower distorting taxes must be greater than the welfare improvement from a reform where the environmental taxes are returned in a lump sum fashion, need not hold in a world with multiple distortions. A small analytic general equilib rium model is constructed to demonstrate this result. We then present a large-scale computable general equilibrium model of the world economy with distortionary taxation. We use this model to evaluate a number of policies to reduce carbon emissions. We find that the weak double dividend is not obtained in a number of European countries. Results also demonstrate the point that the interplay between carbon policies and pre-existing taxes can differ markedly across countries. Thus one must be cautious in extrapolating the results from a country specific analysis to other countries.
dc.description Abstract in HTML and technical report in PDF available on the Massachusetts Institute of Technology Joint Program on the Science and Policy of Global Change Website. (http://mit.edu/globalchange/www/)
dc.description Includes bibliographical references (p. 17-18).
dc.format 22 p.
dc.format 1080442 bytes
dc.format application/pdf
dc.language eng
dc.publisher MIT Joint Program on the Science and Policy of Global Change
dc.relation Report no. 85
dc.rights http://mit.edu/globalchange/www/abstracts.html#a85
dc.subject QC981.8.C5.M58 no.85
dc.title Tax distortions and global climate policy


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