Publication Details
Category Text Publication
Reference Category Conference papers
Title (Primary) Combining emissions trading and emissions taxes in a multi-objective world
Title (Secondary) 11th Biennial Conference of the International Society for Ecological Economics (ISEE) "Advancing Sustainability in a Time of Crisis", Oldenburg and Bremen (Germany), 22 -25 August 2010
Author Lehmann, P.
Year 2010
Department OEKON
Page From 1
Page To 31
Language englisch
Keywords policy mix; emissions trading; emissions tax; efficiency
Abstract The combination of emissions trading and emissions taxes is usually rejected as redundant or inefficient when both policies are assumed to address pollution only. However, particularly taxes may also pursue other objectives, such as raising fiscal revenues. Multiple objectives may justify multiple policies. This article makes three contributions which are necessary to derive pragmatic policy recommendations in this case: (1) Drivers of inefficient pollution abatement under the policy mix are identified. This insight is required to estimate and compare the inefficiency in controlling pollution with benefits of attaining other objectives of the tax. (2) It is shown that if a suboptimal heterogeneous tax is required to address multiple policy objectives, the implementation of an emissions trading scheme in addition may increase the efficiency of pollution control under certain assumptions. (3) It is demonstrated how welfare losses can be minimized within a policy mix by modifying emissions trading design.
Persistent UFZ Identifier https://www.ufz.de/index.php?en=20939&ufzPublicationIdentifier=10245
Lehmann, P. (2010):
Combining emissions trading and emissions taxes in a multi-objective world
11th Biennial Conference of the International Society for Ecological Economics (ISEE) "Advancing Sustainability in a Time of Crisis", Oldenburg and Bremen (Germany), 22 -25 August 2010
Universität Oldenburg, Oldenburg, 1 - 31