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The Supply Side of CO 2 with Country Heterogeneity *
Author(s) -
Hoel Michael
Publication year - 2011
Publication title -
the scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/j.1467-9442.2011.01682.x
Subject(s) - economics , subsidy , context (archaeology) , climate policy , supply side , unit (ring theory) , carbon leakage , natural resource economics , climate change , international economics , market economy , geography , ecology , mathematics education , mathematics , biology , archaeology
Several recent articles have analyzed climate policy, paying explicit attention to the fact that carbon resources are non‐renewable. In most of this body of literature, the economy is treated as a single unit and, in the context of climate policy, it seems reasonable to interpret this as the whole world. However, carbon taxes and other climate policies differ substantially across countries. With such heterogeneity, the effects on the emission paths of changes in taxes, costs, and subsidies might be very different from what is found for a hypothetical world of identical countries.