Hayekian economic policy

Feld, Lars P.; Nientiedt, Daniel

doi:10.1016/j.jebo.2022.10.019

Cited by 1 publication

(2 citation statements)

References 34 publications

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“…A carbon tax or carbon price mitigates those externalities according to economic theory (Xu et al 2023). Feld and Nientiedt (2022) show that such a policy follows a liberal Hayekian principle. On the contrary, Galbraith and van den Bergh (2020), among others, do not study the enforcement of an effective CO2 price or CO2 tax in a global market (Hong et al, 2022).…”

Section: Policy Trade-offmentioning

confidence: 99%

“…Notably, our study complements prior literature by unraveling two hitherto unacknowledged issues. Firstly, we contend that the conventional approach to carbon taxation, as evidenced by Feld and Nientiedt (2022), lacks a nuanced consideration of the global goods character of fossil emissions. Our perspective underscores the necessity of a global response rather than relying on domestic instruments.…”

Section: Carbon Taxationmentioning

confidence: 99%

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Global Versus Regional Carbon Taxation: Exploring a Natural Experiment

Herzog

2024

GLCE

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The reduction of global greenhouse gas emissions has priority due to climate change. Scientists across disciplines promote carbon taxation or carbon pricing as an instrument to mitigate the negative externality of fossil energies. We exhibit two insufficiencies of today’s regulatory policy by utilizing a novel natural experiment. First, carbon taxation is only effective if it is implemented on a global scale because fossil energy markets and emissions are cross-border and global. Second, carbon taxation is based on an extrinsic mechanism and does not alter intrinsic behaviour sustainably. Our applied theory and modelling approach is corroborating these findings. The present regulatory approach is doomed to fail due to overambitious European countries and unambitious (partly realistic) rest of the world. Our interdisciplinary analysis unravels a new agenda to achieve the essential aim. What is needed is a global climate club, as proposed by Nobel Laureate William Nordhaus, with a least but global greenhouse gas reduction.

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Section: Policy Trade-offmentioning

confidence: 99%

Section: Carbon Taxationmentioning

confidence: 99%