Too Much Coal, Too Little Oil

Article, Preprint OPEN
Frederick van der Ploeg ; Cees Withagen (2011)
  • Journal: Journal of Public Economics (issn: 0047-2727)
  • Related identifiers: doi: 10.1016/j.jpubeco.2011.08.005
  • Subject: Herfindahl rule, Hotelling rule, non-renewable resource, dirty backstop, coal, global warming, carbon tax, renewables, tax on coal, subsidy on renewables
    • jel: jel:Q54 | jel:Q42 | jel:Q30
    mesheuropmc: respiratory system | complex mixtures | respiratory tract diseases | otorhinolaryngologic diseases | 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
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