Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/301327 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 11201
Publisher: 
CESifo GmbH, Munich
Abstract: 
Should climate policy rely on a price of Carbon that is uniform across sectors? This paper studies this question from a public finance perspective. It is found that a justification for a uniform price can be given, but it relies on strong assumptions, among them indifference with respect to the distributive consequences of climate policy. Distributive considerations may imply that sectors whose output is consumed mostly by “the poor” should contribute less to meeting the government’s emission target, whereas sectors whose output is consumed mostly by “the rich” should contribute more.
Subjects: 
climate policy
equity-efficiency trade-off
optimal taxation
JEL: 
D63
H21
H22
Q58
Document Type: 
Working Paper
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