Carbon Taxes: Their Macroeconomic Effects and Prospects for Global Adoption: A Survey of the Literature
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Summary:
The carbon tax is a major instrument for curbing greenhouse gas emissions that cause global warming. Yet its adoption has been limited because of concerns over its effects on economic growth, income distribution, and international competitiveness. The paper shows that policymakers can minimize the effects of the tax on economic growth through an efficient recycling of tax revenues and on equity through the adoption of appropriate mitigating or compensating measures. To eliminate the worry about the loss of competitiveness, the paper suggests an international agreement on a coordinated adoption of the tax.
Series:
Working Paper No. 1998/073
Subject:
Carbon tax Climate change Environment Greenhouse gas emissions Revenue administration Taxes
English
Publication Date:
May 1, 1998
ISBN/ISSN:
9781451849431/1018-5941
Stock No:
WPIEA0731998
Pages:
39
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