Climate policy enhances efficiency: a macroeconomic portfolio effect
"Carbon pricing regulates emission flows and collects rents from underlying fossil resource stocks. The resulting investment shift implies lower climate policy costs and improved welfare if capital is underaccumulated. We prove that under emission trading, such a beneficial macroeconomic portfo...
| Main Authors: | , , |
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| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Munich
2015
CESifo |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19115496124919336789-Climate-policy-enhances-effici.htm |
| _version_ | 1771659900206710784 |
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| author | Siegmeier, Jan Mattauch, Linus Edenhofer, Ottmar |
| author_facet | Siegmeier, Jan Mattauch, Linus Edenhofer, Ottmar |
| collection | Library items |
| description | "Carbon pricing regulates emission flows and collects rents from underlying fossil resource stocks. The resulting investment shift implies lower climate policy costs and improved welfare if capital is underaccumulated. We prove that under emission trading, such a beneficial macroeconomic portfolio effect between fossil stocks and capital is induced if some permits are auctioned. Alternatively, a carbon tax also induces a portfolio effect, but cannot simultaneously implement a given mitigation path and collect an arbitrary rent share. Finally, treating the right to recurrently receive a share of total emission permits as a tradable asset is formally, but not politically equivalent." |
| format | TEXT |
| id | 19115496124919336789_2da9a9e9bddf459a8ba835d87b884131 |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19115496124919336789_2da9a9e9bddf459a8ba835d87b884131 |
| is_hierarchy_title | Climate policy enhances efficiency: a macroeconomic portfolio effect |
| language | English |
| physical | 37 p. Digital |
| publishDate | 2015 |
| publisher | Munich CESifo |
| spellingShingle | Siegmeier, Jan Mattauch, Linus Edenhofer, Ottmar climate change environmental policy macroeconomics taxation welfare state Climate policy enhances efficiency: a macroeconomic portfolio effect |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=108636892681 |
| title | Climate policy enhances efficiency: a macroeconomic portfolio effect |
| topic | climate change environmental policy macroeconomics taxation welfare state |
| url | https://www.labourline.org/KENTIKA-19115496124919336789-Climate-policy-enhances-effici.htm |