Untapped fossil fuel and the green paradox: a classroom calibration of the optimal carbon tax

Environmental Economics and Policy Studies

Volumn 17, Issue 2, 2015, Pages 185-210

  van der Ploeg, Frederick ^a,b  

^a UNIVERSITY OF OXFORD   (United Kingdom)

^b VU UNIVERSITY AMSTERDAM   (Netherlands)

Author keywords

Energy transitions; Global warming; Optimal carbon tax; Renewable; Social cost of carbon

Indexed keywords

EID: 84939958503     PISSN: 1432847X     EISSN: None     Source Type: Journal    
DOI: 10.1007/s10018-014-0097-7     Document Type: Article

References (31)

1. Acemoglu D, Aghion P, Bursztyn L, Hemous D (2012) The environment and directed technical change. Am Econ Rev 102(1):131–166
2. Ackerman F, Stanton EA (2012) Climate risks and carbon prices: revising the social cost of carbon. Economics 6(10):1–25
3. Allen MR, Frame DJ, Mason CF (2009a) The case for mandatory sequestration, Nature Geosci pp 813–814
4. Allen MR, Frame DJ, Huntingford C, Jones CD, Lowe JA, Meinshausen M, Meinshausen N (2009b) Warming caused by cumulative carbon emissions towards the trillionth tonne. Nature 458:1163–1166
5. BP (2012) Statistical review of world energy, London, UK
6. de Mooij R, Parry IWH, Keen M (eds) (2012) Fiscal policy to mitigate climate change—a guide for policy makers. International Monetary Fund, Washington
7. Gerlagh R, Liski M (2013) Carbon prices for the next thousand years, mimeo., Tilburg University
8. Golosov M, Hassler J, Krusell P, Tsyvinski A (2014) Optimal taxes on fossil fuel in general equilibrium. Econometrica 81(2):41–88
9. Hanemann WM (2008) What is the economic cost of climate change? eScholarship. University of California, Berkeley
10. Hassler J, Krusell P, Olovsson P (2011) Energy-saving directed technical change, mimeo., University of Stockholm
11. Hassler J, Krusell P (2012) Economics and climate change: integrated assessment in a multi-region world, J. Schumpeter Lecture, University of Stockholm
12. Helm D (2012) The carbon crunch: how we’re getting climate change wrong—and how to fix it. Yale University Press, New Haven and London
13. Herfindahl OC (1967) Depletion and economic theory. In: Gaffney M (ed) Extractive resources and taxation. University of Wisconsin Press, Wisconsin, pp 63–90
14. Hope CW (2006) The marginal impact of CO2 from PAGE 2002: an integrated assessment model incorporating the IPCC’s five reasons for concern. Integr Assess 6:1–16
15. Hübler M, Baumstark L, Leimbach M, Edenhofer O, Bauer N (2012) An integrated assessment model with endogenous growth. Ecol Econ 83:118–131
16. IMF (2013) Energy subsidy reform: lessons and implications. International Monetary Fund, Washington
17. IPCC (2007) Fourth assessment report. Intergovernmental Panel of Climate Change, Geneva
18. IPCC (2014) Fourth assessment report. Intergovernmental Panel of Climate Change, Geneva
19. Liski M, Tahvonen O (2004) Can carbon tax eat OPEC’s rents. J Environ Eco Manage 47(1):1–12
20. Nordhaus WD (2008) A Question of balance: economic modeling of global warming. Yale University Press, New Haven
21. Otto A, Otto FEL, Boucher O, Church J, Hegerl G, Forster PM, Gillett NP, Gregory J, Johnson GC, Knutti R, Lewis N, Lohmann U, Marotzke J, Myhre G, Shindell D, Stevens B, Allen MR (2013) Energy budget constraints on climate change, Nature Geosci, pp 1–2
22. Rezai A, van der Ploeg F (2013) Abandoning fossil fuel: how fast and how much, research paper 123. University of Oxford, OxCarre
23. Rezai A, Foley D, Taylor L (2012) Global warming and economic externalities. Econ Theor 49:329–351
24. Sinn HW (2008) Public policies against global warming. Int Tax Publ Finance 15(4):360–394
25. Stern NH (2007) The economics of climate change—the stern review. Oxford University Press, Oxford
26. The Economist (2013) Unburnable fuel—energy firms and climate change, The Economist, 4 May. http://www.economist.com/news/business/21577097-either-governments-are-not-serious-about-climate-change-or-fossil-fuel-firms-are?frsc=dg|c&fsrc=scn/tw_app_iphone
27. Tol R (2002) Estimates of the damage costs of climate change, part I: benchmark estimates. Environ Resour Econ 22:47–73
28. van der Ploeg F, Withagen C (2012a) Is there really a Green Paradox? J Environ Eco Manage 64(3):342–363
29. van der Ploeg F, Withagen C (2012b) Too much coal, too little oil. J Publ Eco 96:62–77
30. van der Ploeg F, Withagen C (2014) Growth, renewables and the optimal carbon tax. Int Eco Rev 55(1):283–311
31. Weitzman ML (2012) GHG targets as insurance against catastrophic climate damages. J Publ Eco Theory 14(2):221–244