Political economy constraints on carbon pricing policies : What are the implications for economic ef fi ciency , environmental ef fi cacy , and climate policy design ?

@inproceedings{Jenkins2015PoliticalEC,
  title={Political economy constraints on carbon pricing policies : What are the implications for economic ef fi ciency , environmental ef fi cacy , and climate policy design ?},
  author={Jesse D. Jenkins},
  year={2015}
}
  • Jesse D. Jenkins
  • Published 2015
Economists traditionally view a Pigouvian fee on carbon dioxide and other greenhouse gas emissions, either via carbon taxes or emissions caps and permit trading (“cap-and-trade”), as the economically optimal or “first-best” policy to address climate change-related externalities. Yet several political economy factors can severely constrain the implementation of these carbon pricing policies, including opposition of industrial sectors with a concentration of assets that would lose considerable… CONTINUE READING