Can a Carbon Tax Be Effective without a Grand Coalition?

Levy, Amnon
February 2014
World Journal of Neuroscience;Feb2014, Vol. 4 Issue 1, p12
Academic Journal
This paper analyzes an interaction between a carbon-tax collecting and investing coalition of rich countries, abstaining rich countries and poor countries. The non-coalition countries may suffer from loss of reputation and guilt and may overstate the emission-moderating effect of the carbon tax. As long as these three types of countries react to their counterparts' emissions, taxing carbon-dioxide emissions unilaterally does not necessarily reduce the global emissions. Nor does it necessarily moderate the emissions of the coalition.


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