Global carbon price asymmetry
| cam.depositDate | 2022-05-31 | |
| cam.issuedOnline | 2022-06-03 | |
| cam.orpheus.counter | 3 | |
| cam.orpheus.success | Mon Jun 27 07:19:04 BST 2022 - Embargo updated | |
| dc.contributor.author | Ritz, RA | |
| dc.date.accessioned | 2022-06-01T23:30:23Z | |
| dc.date.available | 2022-06-01T23:30:23Z | |
| dc.date.issued | 2022-07 | |
| dc.date.updated | 2022-05-31T16:35:53Z | |
| dc.description.abstract | This paper studies a social planner who chooses countries’ carbon prices so as to maximize global welfare. Product markets are characterized by firm heterogeneity, market power, and international trade. Because of the market-power distortion, the planner’s optimal policy is second-best. The main insight is that optimal carbon prices may be highly asymmetric: zero in some countries and above the social cost of carbon in countries with relatively dirty production. This result obtains even though a uniform global carbon price is always successful at reducing countries’ emissions. Competition policy that mitigates market power may enable stronger climate action. | |
| dc.identifier.doi | 10.17863/CAM.85076 | |
| dc.identifier.issn | 0095-0696 | |
| dc.identifier.uri | https://www.repository.cam.ac.uk/handle/1810/337670 | |
| dc.language.iso | eng | |
| dc.publisher | Elsevier | |
| dc.publisher.department | Judge Business School | |
| dc.publisher.url | http://dx.doi.org/10.1016/j.jeem.2022.102687 | |
| dc.rights | Attribution 4.0 International | |
| dc.rights.uri | https://creativecommons.org/licenses/by/4.0/ | |
| dc.subject | 38 Economics | |
| dc.subject | 3801 Applied Economics | |
| dc.subject | 3802 Econometrics | |
| dc.subject | 3803 Economic Theory | |
| dc.subject | 13 Climate Action | |
| dc.title | Global carbon price asymmetry | |
| dc.type | Article | |
| dcterms.dateAccepted | 2022-05-27 | |
| prism.publicationName | Journal of Environmental Economics and Management | |
| pubs.licence-display-name | Apollo Repository Deposit Licence Agreement | |
| pubs.licence-identifier | apollo-deposit-licence-2-1 | |
| rioxxterms.type | Journal Article/Review | |
| rioxxterms.version | VoR | |
| rioxxterms.versionofrecord | 10.1016/j.jeem.2022.102687 |
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