Jump to ContentJump to Main Navigation
Behavioral and Distributional Effects of Environmental Policy$
Users without a subscription are not able to see the full content.

Carlo Carraro and Gilbert E. Metcalf

Print publication date: 2000

Print ISBN-13: 9780226094816

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226094809.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2017. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use (for details see http://www.chicago.universitypressscholarship.com/page/privacy-policy).date: 22 November 2017

Neutralizing the Adverse Industry Impacts of CO2 Abatement Policies: What Does It Cost?

Neutralizing the Adverse Industry Impacts of CO2 Abatement Policies: What Does It Cost?

(p.45) 2 Neutralizing the Adverse Industry Impacts of CO2 Abatement Policies: What Does It Cost?
Behavioral and Distributional Effects of Environmental Policy

A. Lans Bovenberg

Lawrence H. Goulder

University of Chicago Press

This chapter explores the distributional impacts of various CO2 abatement policies in the United States in terms of their impacts on profits and equity values for the industries supplying fossil fuels (the coal industry and crude petroleum and natural gas industry) and the industries that rely heavily on fossil fuels as intermediate inputs (for example, petroleum refining and electric utilities). It examines a range of abatement policies, including policies designed to avoid adverse consequences for the regulated industries. It shows that some of the adverse consequences can be avoided through industry-specific corporate tax cuts, direct transfers, and the government's free provision (or “grandfathering”) of emissions permits to firms. The government has to grandfather only a small fraction of tradable pollution permits or exempt a small fraction of inframarginal emissions from a carbon tax to protect the value of capital in industries that are especially vulnerable to impacts from carbon taxes.

Keywords:   carbon dioxide abatement, carbon taxes, profits, equity, fossil fuels, direct transfers, grandfathering, emissions permits, abatement policies, tax cuts

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.