Arbeitspapier
Pricing carbon in a multi-sector economy with social discounting
Economists tend to view a uniform emissions price as the most cost-effective approach to reducing greenhouse gas emissions. This paper offers a different view, focusing on economies where society values the well-being of future generations more than private actors. Employing analytical and numerical general equilibrium models, we show that a uniform carbon price is efficient only under restrictive assumptions about technology homogeneity and intertemporal decision-making. Non-uniform pricing spurs capital accumulation and benefits future generations. Depending on sectoral heterogeneity in the substitutability between capital and energy inputs, we find that optimal carbon prices differ widely across sectors and yield substantial welfare gains relative to uniform pricing.
- Sprache
-
Englisch
- Erschienen in
-
Series: ZEW Discussion Papers ; No. 21-060
- Klassifikation
-
Wirtschaft
Climate; Natural Disasters and Their Management; Global Warming
Environmental Economics: Government Policy
Energy and the Macroeconomy
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Optimization Techniques; Programming Models; Dynamic Analysis
- Thema
-
Sectoral Carbon Pricing
Differentiated Carbon Taxes
Climate Policy
Social Discounting
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kalsbach, Oliver
Rausch, Sebastian
- Ereignis
-
Veröffentlichung
- (wer)
-
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
- (wo)
-
Mannheim
- (wann)
-
2021
- Handle
- Letzte Aktualisierung
- 10.03.2025, 10:42 UTC
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Kalsbach, Oliver
- Rausch, Sebastian
- ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
Entstanden
- 2021
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