nova-paper #15: A Tax on Fossil Carbon is More Effective Than a Tax on CO2 Emissions

This paper describes a fossil carbon tax as a potential realisation of the planned Carbon Border Adjustment Mechanism of the EU. It provides several advantages compared to a CO₂ emission tax, such as complexity, carbon leakage, eligibility to WTO rules or taxation coverage of all sectors in the economy. With its focus on the raw material aspect, it is a much simpler and elegant approach than an end-of-pipe solution that looks at CO₂ emissions.

Press release

http://nova-institute.eu/press/?id=278

Authors

Christopher vom Berg, Michael Carus, Lara Dammer, Tatevik Babayan, Olaf Porc

Date of publication

Jun 2021

Pages

12

Language

File type

PDF

Downloads

728

Topics

Policy

Renewable Carbon Types

Bio-based, CO2-based, Recycling