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...

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Main Authors: Van der Ploeg, Rick, de Zeeuw, Aart
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
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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