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

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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.

Authors
Christopher vom Berg, Michael Carus, Lara Dammer, Tatevik Babayan, Olaf Porc
Date of publication
Jun 2021
Pages
12
Language
File type
PDF
Downloads
566