The Cost-Effectiveness of Alternative Instruments for Environmental Protection in a Second-Best Setting

Goulder, Lawrence H.; Parry, Ian; Williams, Roberton C.; Burtraw, Dallas

doi:10.3386/w6464

Cited by 185 publications

(206 citation statements)

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“…In the latter regard, prior literature (e.g., Goulder et al 1999 emphasizes the large differences in costs between carbon pricing policies where revenues are used productively-most obviously to lower the burden of income and other taxes that distort the level of economic activity and its composition-versus carbon pricing policies (like trading systems with free allowance allocations or carbon taxes with low-value earmarks) that fail to exploit efficiency gains from recycling opportunities. This paper seeks to address the above three questions 2 , though the main focus is on assessing nationally efficient CO 2 prices, that is, prices reflecting domestic (non-internalized) environmental benefits per ton of CO 2 reductions.…”

Section: These Considerations Raise Three Important Questions For Polmentioning

confidence: 99%

How Much Carbon Pricing Is in Countries’ Own Interests? The Critical Role of Co-Benefits

2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper calculates, for the top twenty emitting countries, how much pricing of carbon dioxide (CO2) emissions is in their own national interests due to domestic co-benefits. On average, nationally efficient prices are substantial, $57.5 per ton of CO 2 (for year 2010), reflecting primarily health co-benefits from reduced air pollution at coal plants and, in some cases, reductions in automobile externalities (net of fuel taxes/subsidies). Pricing co-benefits reduces CO 2 emissions from the top twenty emitters by 13.5 percent. However, co-benefits vary dramatically across countries (e.g., with population exposure to pollution) and differentiated pricing of CO 2 emissions therefore yields higher net benefits (by 23 percent) than uniform pricing. Terms of use: Documents inJEL-Code: H230, Q480, Q540, Q580.Keywords: carbon pricing, co-benefits, air pollution, fuel taxes, top twenty emitters. Ian Parry Fiscal Affairs Department

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Section: These Considerations Raise Three Important Questions For Polmentioning

confidence: 99%

How Much Carbon Pricing Is in Countries’ Own Interests? The Critical Role of Co-Benefits

2015

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“…In fact, in this case, if the tax rate is not particularly large, it yields Kaldor-Hicks superiority even with lower rent dissipation. 16 On revenue recycling effects see, for example, Goulder (1995), Parry (1995), andGoulder et al (1999). 17 For asymmetric valuations see Hillman and Riley (1989).…”

Section: Tax Revenue and Appropriationmentioning

confidence: 99%

Coasean bargaining in the presence of Pigouvian taxation

MacKenzie

Ohndorf

2016

Journal of Environmental Economics and Management

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“…In a competitive emissions market with low transaction costs, the initial allocation of rights will not affect the final use of the allowances. However, how the rights are allocated can have significant economic consequences through its effect on entry and exit decisions and on marginal tax rates (Goulder et al, 1999). The DEQ's main goal for the auction was that it maximize revenue generated for the state.…”

Section: Introductionmentioning

confidence: 99%