An end-use energy model is presented for assessing policy options to reduce greenhouse gas emissions. This model evaluates effects of imposing a carbon tax on various carbon-emitting technologies for reducing CO2 emissions. It also estimates effects of combining a carbon tax with subsidies. The problem can be formulated as two-level mathematical programming. An algorithm is proposed and applied...

This paper looks at both the efficiency and distributional implications of a carbon tax and/or other energy taxes as part of a package of measures to address the budget deficit. We build a dynamic general-equilibrium overlapping-generations model (OLG) of the U.S. economy, including detail on government taxes and expenditures and a disaggregated production structure including several energy ind...

ing from the gap between decision and experienced utility, we find that behavioral biases do not impose additional costs on welfare. This interpretation is consistent with the concept of internality proposed by Allcott et al. (2014) and the model of behavioral biases proposed by Farhi and Gabaix (2015). In contrast, we represent transaction cost microfrictions as an economic cost C that the con...

The country seems to have quickly embarked on a new energy crisis. "From Manhattan to Montana, worries are mount­ ing that skyrocketing power prices and rolling blackouts will soon spread from their epicenter in California.... Concern about the power picture extends to the top levels of the Bush Administration as it attempts to hammer out a new energy policy."i As politicians search for possibl...

The country seems to have quickly embarked on a new energy crisis. "From Manhattan to Montana, worries are mount­ ing that skyrocketing power prices and rolling blackouts will soon spread from their epicenter in California.... Concern about the power picture extends to the top levels of the Bush Administration as it attempts to hammer out a new energy policy."i As politicians search for possibl...

In this paper we study political-economy determinants of the differentiation of environmental taxes between sectors. Using a common-agency model, we provide predictions on tax differentiation which are then tested using data from the German Ecological Tax Reform. As the reform is revenue neutral and reduces labor costs, tax differentiation is not only determined by the activity of lobby groups ...

There is an increasingly urgent need to reduce carbon emissions. Devising effective carbon tax policies has become an important research topic. It is necessary to explore carbon reduction strategies based on the design of carbon tax elements. In this study, we explore the effect of a progressive carbon tax policy on carbon emission reductions using the logical deduction method. We apply experie...