From this week's Economist:
https://www.economist.com/finance-and-economics/2018/08/18/how-to-design-carbon-taxes
How to design carbon taxes
The levies raise revenue and reduce emissions. But their unpopularity is a problem
Governments have two ways to price carbon. They can levy a tax on each tonne of CO2 emitted, an approach pioneered by Finland in 1990. Or they can issue a fixed number of pollution permits to companies, which can then trade the permits with others. The European Union (EU), a handful of American states and, starting this year, China have opted for some version of this “cap-and-trade” approach. These schemes have tended to be limited to a few carbon-intensive industries, such as power generation, oil-refining and steel- and cement-making.
A new IMF working paper by Ian Parry, Victor Mylonas and Nate Vernon finds that taxes raise around twice as much revenue as today’s cap-and-trade schemes, and are roughly 50% better at cutting emissions[...]
https://www.economist.com/finance-and-economics/2018/08/18/how-to-design-carbon-taxes
https://www.economist.com/finance-and-economics/2018/08/18/how-to-design-carbon-taxes
How to design carbon taxes
The levies raise revenue and reduce emissions. But their unpopularity is a problem
Governments have two ways to price carbon. They can levy a tax on each tonne of CO2 emitted, an approach pioneered by Finland in 1990. Or they can issue a fixed number of pollution permits to companies, which can then trade the permits with others. The European Union (EU), a handful of American states and, starting this year, China have opted for some version of this “cap-and-trade” approach. These schemes have tended to be limited to a few carbon-intensive industries, such as power generation, oil-refining and steel- and cement-making.
A new IMF working paper by Ian Parry, Victor Mylonas and Nate Vernon finds that taxes raise around twice as much revenue as today’s cap-and-trade schemes, and are roughly 50% better at cutting emissions[...]
https://www.economist.com/finance-and-economics/2018/08/18/how-to-design-carbon-taxes
