On the Optimum Trend of Fossil Fuel Taxation

Sinclair, Peter

doi:10.1093/oep/46.supplement_1.869

Cited by 96 publications

(79 citation statements)

References 5 publications

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“…Pollution has a negative effect on the utility function, but the clean substitute plays no role except in the terminal phase. Other studies such as Sinclair (1994) and Ulph and Ulph (1994) have examined the time profile of the carbon tax in an infinite horizon framework but without a 2…”

Section: Introductionmentioning

confidence: 99%

A Hotelling Model with a Ceiling on the Stock of Pollution

2004

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Environmental agreements such as the Kyoto Protocol aim to stabilize the amount of carbon in the atmosphere, which is mainly caused by the burning of nonrenewable resources such as coal.We characterize the solution to the textbook Hotelling model when there is a ceiling on the stock of emissions. We consider both increasing and decreasing demand for energy. We show that when the ceiling is binding, both the low-cost nonrenewable resource and the high-cost renewable resource may be used jointly. A key implication is that if energy demand were to decline in the long run, we may supplement energy supply through ''clean'' renewables to meet the environmental standard, but then revert back to using only ''dirty'' fossil fuels in the future when the ceiling has become non-binding. That is, the much heralded societal ''transition'' to clean energy resources may be somewhat short-lived.JEL classification : Q12, Q32, Q41

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Section: Introductionmentioning

confidence: 99%

A Hotelling Model with a Ceiling on the Stock of Pollution

2004

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“…Because this front-loading of fossil supply causes an acceleration of climate change, intertemporal carbon leakage is also known as the Green Paradox (cf. Sinclair 1994;Sinn 2008Sinn , 2012. A Weak Green Paradox is said to occur when current emissions increase upon the introduction of these (suboptimal) climate policies, whereas a Strong Green Paradox arises when the present discounted value of climate damages increases as well (cf.…”

Section: Carbon Leakage and The Green Paradoxmentioning

confidence: 99%

Frontiers of Climate Change Economics

Meijden

Ploeg

Withagen

2017

Environ Resource Econ

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The economics of climate change is an active field of research. The contributions to a Special Issue are put in context of the literature, and it is suggested that second-best issues such as carbon leakage and the Green Paradox need to be complemented with a political economy analysis of why certain instruments are politically infeasible and with intra-and intergenerational analyses of the impact of climate policy. A case is also made for more empirical work on the gradual and catastrophic damages of global warming.

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“…Unsurprisingly, oligopolistic interaction has not been considered as a fundamental ingredient in modelling this issue. In fact, the backbone of the dynamic analysis carried out on this leitmotiv (Markusen, 1975;Sinclair, 1992Sinclair, , 1994Ulph and Ulph, 1994;Wirl, 1994;1995;Hoel and Kverndokk, 1996;Tahvonen, 1996;Rubio and Escriche, 2001) focusses on monopolistic extraction, where this single agent is a cartel (say, OPEC).…”

Section: Related Literaturementioning

confidence: 99%

“…4 A related aspect concerns the intertemporal behaviour of the carbon tax (Sinclair, 1994;Ulph and Ulph, 1994). Shall we expect to observe a monotone relationship between the optimal carbon tax and the residual stock of the natural resource being extracted?…”

Section: Related Literaturementioning

confidence: 99%

On the Interplay between Resource Extraction and Polluting Emissions in Oligopoly

Lambertini

2014

SSRN Journal

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This paper o¤ers an overview of the literature discussing oligopoly games in which polluti ng emissions are generated by the supply of goods requiring a natural resource as an input. An analytical summary of the main features of the interplay between pollution and resource extraction is then given using a di¤erential game based on the Cournot oligopoly model, in which (i) the bearings on resource preservation of Pigouvian tax rate tailored on emissions are singled out and (ii) the issue of the optimal number of …rms in the commons is also addressed.

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On the Optimum Trend of Fossil Fuel Taxation

Cited by 96 publications

References 5 publications

A Hotelling Model with a Ceiling on the Stock of Pollution

A Hotelling Model with a Ceiling on the Stock of Pollution

Frontiers of Climate Change Economics

On the Interplay between Resource Extraction and Polluting Emissions in Oligopoly

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