On optimal emission control – Taxes , substitution and business cycles

@inproceedings{Lintunen2013OnOE,
  title={On optimal emission control – Taxes , substitution and business cycles},
  author={Jussi Lintunen and Lauri Vilmi},
  year={2013}
}
  • Jussi Lintunen, Lauri Vilmi
  • Published 2013
This paper studies the cyclical properties of optimal emission taxes and emissions using a real business cycle model with a stock pollutant. We derive conditions for the procyclicality of optimal emission tax and show that the tax is in typical conditions procyclical. The possibility of a countercyclical behavior of the emission tax increases if 1) the… CONTINUE READING