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Optimising carbon taxation: tax energy sources, not sectors, and be consistent

Bös, Mattis, Matoorian, Negar and Vrolijk, Kasper (2021) Optimising carbon taxation: tax energy sources, not sectors, and be consistent. LSE Business Review (07 Jul 2021). Blog Entry.

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Abstract

Many governments consider carbon taxation an efficient tool to reduce carbon emissions, but it can negatively affect welfare in terms of emission reductions versus reductions in output. So, how can carbon taxes be best introduced? In a new study using evidence from Mexico, Mattis Bös, Negar Matoorian, and Kasper Vrolijk show that when governments cannot select the most optimal policy –simply taxing some energy sources but not others – this may have substantial implications on how emissions and output, and eventually welfare, are affected.

Item Type: Online resource (Blog Entry)
Official URL: https://blogs.lse.ac.uk/businessreview/
Additional Information: © 2021 The Authors
Divisions: LSE
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HJ Public Finance
Date Deposited: 14 Sep 2021 11:39
Last Modified: 14 Sep 2021 11:39
URI: http://eprints.lse.ac.uk/id/eprint/111647

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