The Grey Paradox: How Owners Of Carbon-emitting Resources Can Benet From Carbon Taxation.

摘要

We build a model of resource extraction to highlight how CO_2 taxationcan increase the prots of owners of a carbon-emitting exhaustible resource.This resource competes with a dirtier abundant resource anda clean backstop. CO_2 concentration has to be kept under a ceiling.The optimum is decentralized by a carbon tax. As the carbon ceilingis tightened, the exhaustible-resource rent, and thus prots, is partlycaptured by the tax levier (the "capture effect"), but the dirtier resourceis made less competitive (the "competition effect"). The role of resourceendowments, pollution contents, extraction costs and demand elasticityis analyzed.