Category Archives: Climate change

Some Carbon Tax Scenarios

How does a competitive industry respond to an emissions tax in the short run and the long run?  What if the industry is a monopoly? In this post I bring together two standard pieces of microeconomic analysis: the effect of … Continue reading

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Progress with Carbon Capture and Storage

The recent launch of a large-scale power station retro-fitted with carbon capture and storage (CCS) is an important step forward in addressing climate change.  It is no criticism to add that many issues surrounding CCS remain to be resolved. The … Continue reading

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Do We Need a Renewables Policy?

Question: If an effective carbon tax or cap-and-trade policy is in place to limit greenhouse gas emissions, is there any point in having a separate policy to promote renewable energy sources? I have read several times recently that the answer … Continue reading

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Some Economics of a Carbon Tax

A carbon tax can be an effective policy for reducing emissions.  It also affects output and social welfare. Like many economists I am fond of diagrams.  I feel I understand a piece of economics when I see it expressed in … Continue reading

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