Efficient management of insecure fossil fuel imports through taxing (!) domestic green energy?

Arbeitspapier

A small open economy produces a consumer good along with green and black energy and imports fossil fuel for black-energy production at an uncertain world market price. Efficient risk management requires curbing fuel consumption, and hence carbon emissions, when consumers are prudent. Moreover, if consumer preferences display constant absolute risk aversion (implying prudence), an efficient response to increasing risk is promoting green energy and reducing total energy production. Unregulated competitive markets are inefficient when consumers are risk averse. With the plausible assumption of prudent consumers and risk neutral producers, taxing both fossil fuel and green energy restores efficiency.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Volkswirtschaftliche Diskussionsbeiträge ; No. 138-09

Classification and Topics

• Classification: Wirtschaft ; Trade and Environment ; Alternative Energy Sources ; Energy: Government Policy
• Subject: price uncertainty ; black energy ; green energy ; fossil fuel ; Energiesteuer ; Regenerative Energie ; Fossiler Energieträger ; Rohstoffpreis ; Außenhandelspreis ; Risikoaversion ; Kleines-offenes-Land ; Umweltökonomik ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Eichner, Thomas ; Pethig, Rüdiger
• Event: Veröffentlichung
• (who): Universität Siegen, Fakultät III, Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht
• (where): Siegen
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/41091
• Last update: 10.03.2025, 11:42 AM CET