Carbon Taxes with Exemptions in an Open Economy: A General Equilibrium Analysis of the German Tax Initiative 1

2001 ◽  
pp. 263-274
Author(s):  
Christoph Böhringer ◽  
Thomas F. Rutherford
Keyword(s):  
General Equilibrium ◽  
Open Economy ◽  
Equilibrium Analysis ◽  
Carbon Taxes ◽  
General Equilibrium Analysis

scholarly journals Is Pollution a Giffen Good? General-Equilibrium Analysis and Some Policy Implications

2019 ◽  
Vol 10 (3) ◽  
pp. 488
Author(s):  
Aleksandar VASILEV
Keyword(s):  
Simple Model ◽  
General Equilibrium ◽  
Environmental Quality ◽  
Policy Implications ◽  
Equilibrium Analysis ◽  
Carbon Taxes ◽  
Pollution Permits ◽  
General Equilibrium Analysis ◽  
Giffen Good ◽  
Emission Caps

This paper takes a simple model with pollution and environmental quality and derives some novel results. In particular, pollution is shown to be a Giffen good. This is a very important finding with clear policy implications, namely that carbon taxes (and pollution permits) are counter-productive, as they lead to increase in pollution, and instead governments should administratively set emission caps.

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