The paper presented in this Research Seminar uses field-level cost estimates of all oil and natural gas fields to highlight dynamic aspects of a global carbon tax. Some of the initial reduction in consumption will be offset through higher consumption later on. Only high-cost reserves will be priced out of the market, e.g., at 200 dollars per ton of CO₂ cumulative emissions decrease by 4%. The tax incidence initially falls on consumers under a constant tax but eventually becomes negative as the lifetime of the resources is extended. An increasing tax over time reduces the initial incidence on consumers.

Speaker

Wolfram Schlenker

Columbia University, New York, USA

Location

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Date

18.05.2022 | 14:00 - 15:30 (CET)

Event Location

ZEW – Leibniz-Zentrum für Europäische Wirtschaftsforschung

L 7, 1 68161 Mannheim

Room

Heinz König Hall

Contact

Advanced Researcher