Abstract
A cap is imposed on the carbon tax rate if the total tax revenue is not allowed to increase. Using recent data on the carbon-intensity of the economy and the overall tax take, I show that this cap constrains almost any climate policy in at least some countries. A larger number of countries, emitting a substantial share of global carbon dioxide, cannot fully participate if the carbon tax (or equivalent alternative regulation) is high enough to meet the 2 °C target. For that target, the carbon tax revenue in 2020 is greater than 10 % of total tax revenue in every country. © 2012 Springer Science+Business Media B.V.
Original language | English |
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Pages (from-to) | 409-415 |
Journal | Climatic Change Letters |
Volume | 114 |
Issue number | 2 |
Early online date | 28 Jul 2012 |
DOIs | |
Publication status | Published - 2012 |