Taxing average emissions to overcome the shutdown problem

• 成果类型: Article
• 署名作者: Liski, M
• 署名单位: Aalto University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(00)00168-7
• 发表日期: 2002
• 页码: 363-384
• 关键词: pollution; taxation; nonconvexities; chattering

摘要

The paper shows that the optimal regulation of stock pollutants can require fluctuating emissions even in the absence of uncertainty. The optimum cannot be implemented by the usual Pigouvian flow tax since it leads to a shutdown problem. A remedy for the problem is to use a linear tax given by a mechanism that effectively taxes average emissions over time. An alternative is to use tax schedules depending on cumulative emissions over a short period of time. A calibration using cost estimates of greenhouse gases suggests that potential gains from fluctuating carbon emissions are considerable. (C) 2002 Elsevier Science B.V. All rights reserved.