G2TT
来源类型Discussion Paper
规范类型论文
Strategic carbon taxation and energy pricing under the threat of climate tipping events
Zhang, Xiaobing; Zhu, Lei
发表日期2017-06-11
出版年2017
语种英语
摘要

Zhang, Xiaobing and Lei Zhu. 2017. “Strategic carbon taxation and energy pricing under the threat of climate tipping events.” Economic Modelling. 60:January: 352-363.
Download reference Doi:10.1016/j.econmod.2016.09.013

An appropriate design of climate mitigation policies such as carbon taxes may face a lot of challenges in reality, e.g., the strategic behavior of fossil fuel producers, and huge uncertainty surrounding the climate system. This paper investigated the effect of possible climate tipping events on optimal carbon taxation and energy pricing, taking into account the strategic behavior of energy consumers/producers and the uncertainty of tipping points through a stochastic dynamic game. The game was solved numerically to get some insights into the equilibrium carbon taxation and energy pricing strategies under the threat of possible tipping events. The results suggest that the sudden occurrence of tipping events will shift the carbon tax upwards but shift the (wellhead) fuel price downwards, which generates an overall effect of a sudden increase in the consumer price. The irreversibility of the damage caused by a tipping point implies more aggressive carbon taxation. Moreover, the design of climate policy should adjust to tipping probabilities, damage uncertainty, and types of tipping events.

主题Energy
URLhttps://efdinitiative.org/publications/strategic-carbon-taxation-and-energy-pricing-under-threat-climate-tipping-events
来源智库Environment for Development Initiative (Sweden)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/138391
推荐引用方式
GB/T 7714
Zhang, Xiaobing,Zhu, Lei. Strategic carbon taxation and energy pricing under the threat of climate tipping events. 2017.
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