Pricing carbon and adjusting capital to fend off climate catastrophes
"The optimal reaction to a potential productivity shock as a consequence of climate tipping is to substantially tax carbon in order to curb the risk of tipping, but to adjust capital as well in order to smooth consumption when tipping occurs. We also allow for conventional marginal climate dama...
| Main Authors: | , |
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| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Oxford
2018
University of Oxford |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19303661124911218439-Pricing-carbon-and-adjusting-c.htm |
| _version_ | 1771659899350024193 |
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| author | Van der Ploeg, Rick de Zeeuw, Aart |
| author_facet | Van der Ploeg, Rick de Zeeuw, Aart |
| collection | Library items |
| description | "The optimal reaction to a potential productivity shock as a consequence of climate tipping is to substantially tax carbon in order to curb the risk of tipping, but to adjust capital as well in order to smooth consumption when tipping occurs. We also allow for conventional marginal climate damages and decompose the optimal carbon tax in two catastrophe components and the conventional component. We distinguish constant and increasing marginal hazards. Moreover, the productivity catastrophe is compared with recoverable catastrophes and with a shock to the climate sensitivity. Finally, we allow for investments in adaptation capital as an alternative to counter the potential adverse effects of climate tipping. Quantitatively, the results are investigated with a calibrated model for the world economy." |
| format | TEXT |
| id | 19303661124911218439_94f99fcf484141368ad26fa0e6bbc026 |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19303661124911218439_94f99fcf484141368ad26fa0e6bbc026 |
| is_hierarchy_title | Pricing carbon and adjusting capital to fend off climate catastrophes |
| language | English |
| physical | 28 p. Digital |
| publishDate | 2018 |
| publisher | Oxford University of Oxford |
| spellingShingle | Van der Ploeg, Rick de Zeeuw, Aart taxation gas emission climate change economic growth Pricing carbon and adjusting capital to fend off climate catastrophes |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=136968095414 |
| title | Pricing carbon and adjusting capital to fend off climate catastrophes |
| topic | taxation gas emission climate change economic growth |
| url | https://www.labourline.org/KENTIKA-19303661124911218439-Pricing-carbon-and-adjusting-c.htm |