A time-varying carbon tax to protect the environment while safeguarding the economy
ECB - Frankfurt am Main
2021
4 p.
environmental policy ; taxation ; business cycle ; climate change ; gas emission
Research Bulletin
86
Public finance and taxation
https://www.ecb.europa.eu/pub/economic-research/resbull/2021/html/ecb.rb210728~224099ec93.en.pdf
English
Bibliogr.
"Climate change is one of the most pressing issues of our time. The challenge for policymakers is that climate policies could have a negative impact on the economy in the short term. In this article we discuss how this trade-off between fighting climate change and ensuring a stable business cycle affects the design of environmental policies. We argue in favour of a time-varying carbon tax that is increased during booms and decreased during recessions."
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