DEMAND- VERSUS SUPPLY-SIDE CLIMATE POLICIES WITH A CARBON DIOXIDE CEILING

• 成果类型: Article
• 署名作者: Eichner, Thomas; Kollenbach, Gilbert; Schopf, Mark
• 署名单位: Fern University Hagen; Fern University Hagen
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/uead002
• 发表日期: 2023
• 页码: 1371-1406
• 关键词: nonrenewable resource; stock externalities; pigouvian taxation; optimal extraction; energy; COOPERATION; ECONOMICS; rents; coal; co2

摘要

In a Hotelling model with a climate coalition and a free-riding fringe, we compare demand-side and supply side climate policies aimed at keeping CO2 concentration below a ceiling equivalent to global warming of 2 degrees C. With the demand-side policy, the coalition caps its fuel demand. The corresponding allocation is intra-temporally distorted. With the supply-side policy, the coalition purchases deposits. The corresponding allocation is inter-temporally distorted and the fuel extraction path can be discontinuous. In an empirically calibrated economy, a medium-sized (the grand) coalition is stable with the demand-side (supply-side) policy. If the coalition acts strategically, the stable grand coalition implements first best.