Tag Archives: carbon tax

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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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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