Climatic Change

, Volume 114, Issue 2, pp 409–415

Leviathan carbon taxes in the short run

A letter
Letter

Abstract

A cap is imposed on the carbon tax rate if the total tax revenue is not allowed to increase. Using recent data on the carbon-intensity of the economy and the overall tax take, I show that this cap constrains almost any climate policy in at least some countries. A larger number of countries, emitting a substantial share of global carbon dioxide, cannot fully participate if the carbon tax (or equivalent alternative regulation) is high enough to meet the 2 °C target. For that target, the carbon tax revenue in 2020 is greater than 10 % of total tax revenue in every country.

Copyright information

© Springer Science+Business Media B.V. 2012

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of SussexFalmerUK
  2. 2.Institute for Environmental StudiesVrije UniversiteitAmsterdamThe Netherlands
  3. 3.Department of Spatial EconomicsVrije UniversiteitAmsterdamThe Netherlands

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