Public policies against global warming
By: Hans-Werner Sinn.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series -- no. 13454.; Working paper series (National Bureau of Economic Research) -- working paper no. 13454.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 38
Subjects: Global warming -- Government policy; Environmental economics
Description: Judged by the principle of intertemporal Pareto optimality, insecure property rights and the greenhouse effect both imply overly rapid extraction of fossil carbon resources. A gradual expansion of demand-reducing public policies -- such as increasing ad-valorem taxes on carbon consumption or increasing subsidies for replacement technologies -- may exacerbate the problem as it gives resource owners the incentive to avoid future price reductions by anticipating their sales. Useful policies instead involve sequestration, afforestation, stabilization of property rights and emissions trading. Among the public finance measures, constant unit carbon taxes and source taxes on capital income for resource owners stand out.
Notes: "September 2007"

Includes bibliographical references (p. 33-36).

Also available in PDF from the NBER world wide web site (www.nber.org).