- Consulting Editors
- List of Contributors
- The Macroeconomics of Global Warming
- Improving Climate Projections to Better Inform Climate Risk Management
- Energy Balance Climate Models, Damage Reservoirs, and The Time Profile of Climate Change Policy
- Economics of Environmental Regime Shifts
- Policy Scenarios in a Model of Optimal Economic Growth and Climate Change
- Adaptive Model-Predictive Climate Policies in a Multicountry Setting
- Prospects of Tools from Differential Games in the Study of Macroeconomics of Climate Change
- Fairness in Climate Negotiations: A Meta-Game Analysis Based on Community Integrated Assessment
- Climate Change and Second-Best Abatement in a Multiregion World with Endogenous Growth
- Global Warming and R&D-Based Growth in a Trade Model between Environmentally Sensitive and Environmentally Neglectful Countries
- Climate Change and Intergenerational Well-Being
- The Atmosphere as a Global Commons
- The Social Cost of Carbon
- Climate-Friendly Technological Change for Developing Countries
- Renewable Energy: Models, Implications, and Prospects
- Emission Trading Systems and Technological Innovation: A Random Matching Model
- The Reality of Nuclear Power: The Fukushima Experience and Its Impact
- Forecast-Based Pricing of Weather Derivatives
- Employment and Output Effects of Climate Policies
- Macroeconomic Effects of Renewable Energy and Energy Efficiency Policies with a Focus on Germany
- Stabilization of Earth’s Climate in the 21st Century by the Stabilization of Per Capita Consumption
- Does the Kyoto Protocol Intensify Carbon Leakage to China?
- Climate Thresholds, Weather Extremes, and Catastrophic Losses
- Climate Impacts on Agriculture: A Challenge to Complacency?
- The Legal Framework of Global Environment Governance on Climate Change: A Critical Survey
- Environment and Development Challenges: The Imperative of a Carbon Fee and Dividend
- The Need for Sustainable Development and a Carbon Market: Avoiding Extinction
- Name Index
- Subject Index
Abstract and Keywords
One of the major instruments that has been proposed to stop global warming is a carbon tax.. A main obstacle for its implementation, however, are concerns about the short-term effects on employment and output. To mitigate possible negative effects, several European countries have introduced so-called environmental tax reforms, which are designed in a budget-neutral manner: Revenues from the tax can be used to reduce existing distortionary taxes or to subsidize less polluting activities. We apply this idea to a carbon tax scheme by performing a vector autoregression (VAR) with output and employment data of nine industrialized countries. We impose a simultaneous policy shock on the economy whereby a carbon tax is levied on high-carbon–intensive industries and the resulting tax revenue is redistributed to low-carbon-intensive industries. Impulse response analysis shows that such a policy allows for net gains in terms of output and employment.
Miki Kato, Associate Professor, Department of Economics, Howard University.
Stefan Mittnik, Full Professor, Chair of Financial Econometrics, Ludwig Maximilian University Munich.
Daniel Samaan, Researcher, International Institute for Labour Studies, ILO, Geneva.
Willi Semmler, Henry Arnhold Professor of Economics, The New School for Social Research.
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