|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/38977
|
| | |
| Title: | | Prices vs. quantities and the intertemporal dynamics of the climate rent  |
| Authors: | | Kalkuhl, Matthias Edenhofer, Ottmar |
| Issue Date: | | 2010 |
| Series/Report no.: | | CESifo working paper Energy and Climate Economics 3044 |
| Abstract: | | This paper provides a formal survey of price and quantity instruments for mitigating global warming. We explicitly consider policies' impact on the incentives of resource owners who maximize their profits intertemporally. We focus on the informational and commitment requirements of the regulator. Furthermore, we study the interplay between (private) resource extraction rent and (public) climate rent and ask how property and management of the climate rent can be assigned between regulator and resource sector. There are only two instruments that unburden the regulator from the complex intertemporal management of the climate rent and associated commitment problems: in the cost-benefit world, we derive a stock-dependent tax rule; in the cost-effective (carbon budget) world, only an emissions trading scheme with free banking and borrowing can shift intertemporal timing decisions completely to the market. |
| Subjects: | | resource extraction climate rent intertemporal policy instruments prices vs. quantities Hotelling |
| JEL: | | Q32 Q38 Q54 Q58 H23 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/38977
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|