Carbon taxes and leakage

There are many advocates in mainstream economic and environmental literature of a carbon tax as an effective method for emission abatement. This makes logical sense in economic terms; set a carbon tax on all production so as to ensure emitters are internalising the full cost of their production activities, reduce demand, reduce emissions. This is […]

Fossil fuel markets and tax policies

Much of the debate concerning taxes on fossil fuels as an effective policy instrument for Greenhouse Gas emissions abatement is largely misguided. This brief article seeks to identify why this is the case, before outlining an effective potential tax strategy to achieve the desired aims. The fact that fossil fuels are exhaustible resources complicates matters […]