ECO 2118 Lecture Notes - Carbon Tax, Marginal Cost, Specific Volume
17 Sep 2013
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Lecture notes for introduction to environmental and natural resource. Carbon taxes fix the cost of carbon and allow the quantity of emissions to be determined: upstream on refineries, coal shippers, etc, downstream on homeowners, vehicle owners. Carbon taxes provide a constant incentive to reduce emissions as firms respond to the: reducing in fossil fuel usage. Investing in new lower emissions technologies policy by: costs. Equimarginal principle holds with carbon taxes as each firm equates marginal abatement: producers will minimize their total private costs by reducing emissions until the tax rate equals their marginal abatement costs. 1 ficient carbo guarantee a on tax should fixed level o d be set so th of emissions hat the tax eq s reductions quals the sc. Cc sion levels ar re t taxes, so lit n, denmark, n ctricity gener ttle needs to. Countries wit: uk ha, austra s already ex th carbon tax as a 16tco.
