Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/46331
Authors: 
Fullerton, Don
Year of Publication: 
2010
Series/Report no.: 
CESifo working paper: Resource and Environment Economics 3299
Abstract: 
While prior literature has identified various effects of environmental policy, this note uses the example of a proposed carbon permit system to illustrate and discuss six different types of distributional effects: (1) higher prices of carbon-intensive products, (2) changes in relative returns to factors like labor, capital, and resources, (3) allocation of scarcity rents from a restricted number of permits, (4) distribution of the benefits from improvements in environmental quality, (5) temporary effects during the transition, and (6) capitalization of all those effects into prices of land, corporate stock, or house values. The note also discusses whether all six effects could be regressive, that is, whether carbon policy could place disproportionate burden on the poor.
Subjects: 
tax incidence
climate policy
capitalization effects
general equilibrium
JEL: 
H23
Q52
Document Type: 
Working Paper

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