Abstract
A uniform price for carbon is at the center of market-based approaches to climate policy. Actual climate policy, by contrast, has many sector-specific rules. This
paper studies the desirability of the market-based approach using tools from the
theory of taxation. It is found that a justification for the market-based approach
can be given, it involves indifference with respect to the distributive consequences
of climate policy, and it requires that a condition of proportional fiscal externalities
is met. If these conditions are not met, a sector specific approach is preferable.
The seminar will be held in room 1249 (12th floor) at Eilert Sundts Hus. The address is Moltke Moes vei 31.