OPTIMAL CONGESTION CHARGES IN GENERAL EQUILIBRIUM

Equilibrium configurations of tripolar charges

It is shown that an ensemble of particles with tripolar (colour) charges will necessarily cohere in a hierarchy of structures, from simple clusters and strings to complex aggregates and cyclic moleculelike structures. The basic combinatoric rule remains essentially the same on different levels of the hierarchy, thus leading to a pattern of resemblance between different levels. The number of pri...

The Stockholm congestion charges: an overview

Congestion charges were introduced in Stockholm in 2006 as a seven‐month trial, followed by a referendum where a majority voted in favour of the charges. This led to the reintroduction of congestion charges in August 2007, and they have been operational since then. The system has attracted worldwide attention worldwide, both because it achieved substantial congestion reductions, and because the...

Strong Equilibrium in Congestion Games

Optimal Taxes on Fossil Fuel in General Equilibrium By

1 We analyze a dynamic stochastic general-equilibrium (DSGE) model with an externality—through climate change—from using fossil energy. Our central result is a simple formula for the marginal externality damage of emissions (or, equivalently, for the optimal carbon tax). This formula, which holds under quite plausible assumptions, reveals that the damage is proportional to current GDP, with the...

Optimal Taxes on Fossil Fuel in General Equilibrium

We embed a simple linear model of the carbon cycle in a standard neoclassical growth model where one input to the production function, oil, is non-renewable. The use of oil generates carbon emission, the key input in the carbon cycle. Changes in the amount of carbon in the atmosphere drive the greenhouse e¤ect and thereby the climate. Climate change is modeled as a global damage to production a...