Optimal Carbon Tax with a Dirty Backstop - Oil, Coal, or Renewables?

Research, Preprint OPEN
Frederick Van der Ploeg ; Cees Withagen (2011)
  • Publisher: Munich: Center for Economic Studies and Ifo Institute (CESifo)
  • Subject: Erschöpfbare Ressourcen | Erdöl | non-renewable resource | renewables | Q30 | Optimale Besteuerung | Q54 | Ökosteuer | Herfindahl rule | Kohle | tax on coal | Regenerative Energie | dirty backstop | Q42 | Hotelling rule | Herfindahl rule, Hotelling rule, non-renewable resource, dirty backstop, coal, global warming, carbon tax, renewables, tax on coal, subsidy on renewables | global warming | subsidy on renewables | coal | Energiesubstitution | carbon tax | Klimaschutz | Theorie
    • ddc: ddc:330
      jel: jel:Q54 | jel:Q30 | jel:Q42
    mesheuropmc: otorhinolaryngologic diseases | respiratory tract diseases | respiratory system | complex mixtures | technology, industry, and agriculture

Optimal climate policy is studied. Coal, the abundant resource, contributes more CO2 per unit of energy than the exhaustible resource, oil. We characterize the optimal sequencing oil and coal and departures from the Herfindahl rule. 'Preference reversal' can take place.... View more
  • References (26)
    26 references, page 1 of 3

    Acemoglu, D., P. Aghion, L. Bursztyn and D. Hemous (2010). The environment and directed technical change, Working Paper 15451, NBER, Cambridge, Mass.

    Aghion, P., R. Veugelers and C. Serre (2009). Cold start for the green innovation machine, Policy Contribution 2009/12, Bruegel, Brussels.

    Bosetti, V., C. Carraro, R. Duval, A. Sgobbi and M. Tavoni (2009). The role of R&D and technology diffusion in climate change mitigation: new perspective using the WITCH model, Department Working Paper 664, OECD, Paris.

    Chakravorty, U. and D.L. Krulce (1994). Heterogeneous demand and order of resource extraction, Econometrica, 62, 6, 1445-1452.

    Chakravorty, U., M. Moreaux and M. Tidball (2008). Ordering the extraction of polluting nonrenewable resources, American Economic Review, 98, 3, 1128-1144.

    Edenhofer, O. and M. Kalkuhl (2009). Das Grünen Paradox - Menetekel oder Prognose, to appear.

    Eichner, T. and R. Pethig (2010). Carbon leakage, the green paradox and perfect future markets, International Economic Review, forthcoming.

    Gaudet, G., M. Moreaux and S.W. Salant (2001). Intertemporal depletion of resource sites by spatially distributed users, American Economic Review, 91, 4, 1149-1159.

    Gerlach, R. (2009). Too much oil, CESifo Economic Studies, forthcoming.

    Golosov, M., J. Hassler, P. Krusell and A. Tsyvinski (2009). Optimal taxes on fossil fuel in general equilibrium, mimeo.

  • Metrics
    No metrics available
Share - Bookmark