Skip to main content

Hybrid Economic Instruments for European Carbon Policy

  • Chapter

Part of the book series: Environment & Policy ((ENPO,volume 4))

Abstract

Current logic has it that the problem of climate change is caused by the emission of several so-called greenhouse gases, or GHGs for short, of which carbon dioxide (CO2) is the most important. CO2 emissions result from different human activities, but the burning of fossil fuels is by far its major source. The emissions, together with the emissions of other GHGs, are supposed to cause increasing concentrations of GHGs in the atmosphere, which might result in climate change and a rise in the earth’s mean temperature. Concern about this scenario has led to different policy proposals to curb those GHG emissions, especially CO2 emissions. One example of clear commitment is the policy goal set by the European Union to emit the same amount of carbon dioxide in the year 2000 as in 1990. To reach this goal, the Commission has proposed a package of instruments which includes a hybrid energy/carbon tax or excise.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Barrett, S. (1992a), ‘Transfers and the Gains from Trading Carbon Emission Entitlements in a Global Warming Treaty’. In: UNCTAD, Combatting Global Warming, Study on a Global System of Tradeable Carbon Emission Entitlements, United Nations, New York.

    Google Scholar 

  • Barrett, S. (1992b), ‘Reaching a CO2 Emission Limitation Agreement for the Community: Implications for Equity and Cost-effectiveness’. In: European Economy, The Economics of Limiting CO2 emissions, Special Edition, Brussels, pp. 3–24.

    Google Scholar 

  • Baumol, W.J. and W. Oates (1988), The Theory of Environmental Policy, Cambridge University Press, Cambridge.

    Book  Google Scholar 

  • Bohm, P. (1994), Government Revenue Implications of Carbon Taxes and Tradeable Carbon Permits, Efficiency Aspects, paper presented at the 50th IIPF Congress, Harvard, Cambridge MA, August 1994.

    Google Scholar 

  • Bovenberg, A.L. (1993), ‘Policy Instruments for Curbing CO2 Emissions: The Case of the Netherlands’, Environmental and Resource Economics, Vol. 3, pp. 233–244.

    Article  Google Scholar 

  • Broome, J. (1992), Counting the Cost of Global Warming, The White Horse Press, Cambridge.

    Google Scholar 

  • Brouwer, O.W. (1994), ‘Subsidarity as a General Legal Principle’. In: M. Dubrulle (ed.), Future European Environmental Policy and Subsidiarity, European Environmental Issues, Nr. 1, European University Press, Brussels.

    Google Scholar 

  • Cline, W.R. (1991), ‘Scientific Basis of the Greenhouse Effect’, The Economic Journal, Vol. 101, pp. 904–919.

    Article  Google Scholar 

  • Cnossen, S. and H.R.J. Vollebergh (1992), ‘Toward a Global Excise on Carbon’, National Tax Journal, Vol. 45, Nr. 1, pp. 23–36.

    Google Scholar 

  • COHERENCE (1991), Cost-effectiveness Analysis of CO2 Reduction Options. Report for the Commission of the European Communities, DG XII, May.

    Google Scholar 

  • Commission of the European Communities (1991), ‘A Community Strategy to Limit Carbon Dioxide Emissions and to Improve Energy Efficiency’, SEC (91) 1744, Brussels.

    Google Scholar 

  • Commission of the European Communities (1992), ‘Proposal for a Council Directive Introducing a Tax on Carbon Dioxide Emissions and Energy’, COM (92) 226 final.

    Google Scholar 

  • Dwyer, J.P. (1992), ‘California’s Tradeable Emissions Policy and its Application to the Control of Greenhouse Gases’. In: OECD, Climate Change -Designing a Tradeable Permit System, Paris.

    Google Scholar 

  • European Economy (1992), The Economics of Limiting CO2 emissions, Special Edition.

    Google Scholar 

  • Goulder, L.H. (1994), Environmental Taxes and the Double-Dividend: A Readers Guide, paper presented at the 50th IIPF congress, Harvard, Cambridge MA, August 1994.

    Google Scholar 

  • Hahn, R.W. (1989), ‘Economic Prescriptions for Environmental Problems: How the Patient Followed the Doctor’s Orders’, Journal of Economic Perspectives, Vol. 3 (Spring), pp. 95–114. *

    Article  Google Scholar 

  • Heister, J., P. Michaelis and E. Mohr (1992), ‘The Use of Tradable Emission Permits for Limiting CO2 Emissions’. In: European Economy (1992), The Economics of Limiting CO2 Emissions, Special Edition, Brussels, pp. 27–62.

    Google Scholar 

  • Hoel, M. (1991), ‘Global Environmental Problems: The Effects of Unilateral Actions Taken by One Country’, Journal of Environmental Economics and Management, Vol. 20, pp. 55–71.

    Article  Google Scholar 

  • Hoeller, P. and J. Coppel (1992), Energy Taxation and Price Distortions in Fossil Fuel Markets: Some Implications for Climate-change Policy, OECD Working Papers, Nr. 110, Paris.

    Book  Google Scholar 

  • Koutstaal, P.R. (1992), Verhandelbare CO2 Emissierechten in Nederland en de EG (Tradeable CO2 Permits in the Netherlands and the EC), Dutch Ministry of Economic Affairs, The Hague.

    Google Scholar 

  • Koutstaal, P.R., H.R.J. Vollebergh and J. de Vries (1994), Hybrid Carbon Incentive Mechanisms for the European Community, Centre for Economic Policy (OCFEB), Research Memorandum 9406, Erasmus Universiteit Rotterdam.

    Google Scholar 

  • Larsen, B. and A. Shah (1994), ‘Global Tradeable Carbon Permits, Participation Incentives, and Transfers’, Oxford Economic Papers, Vol. 46, pp. 841–856.

    Google Scholar 

  • Nordhaus, W.D. (1991), To Slow or Not to Slow: The Economics of the Greenhouse Effect’, The Economic Journal, Vol. 101, pp. 920–937.

    Article  Google Scholar 

  • Pearson, M. and S. Smith (1992), The European Carbon Tax: an Assessment of the European Commission’s Proposals, The Institute for Fiscal Studies, London.

    Google Scholar 

  • Pezzey, J. (1988), ‘Market Mechanisms of Pollution Control: ’Polluter Pays’, Economic and Practical Aspects’. In: R.K. Turner (ed.), Sustainable Environmental Management: Principles and Practice, Belhaven Press, London, pp. 190–242.

    Google Scholar 

  • Pezzey, J. (1992), ‘The Symmetry between Controlling Pollution by Price and Controlling it by Quantity’, Canadian Journal of Economics, Vol. 25.

    Google Scholar 

  • Poterba, J.M. (1991), ‘Tax Policy to Combat Global Warming: On Designing a Carbon Tax’. In: Rudiger Dornbusch and James M. Poterba (eds.), Global Warming, The MIT Press, Cambridge Mass., pp. 71–98.

    Google Scholar 

  • Rose, A. (1992), ‘Equity Considerations of Tradeable Carbon Emission Entitlements’. In: UNCTAD, Combatting Global Warming, Study on a Global System of Tradeable Carbon Emission Entitlements, United Nations, New York.

    Google Scholar 

  • Schelling, T. (1992), ‘Some Economics of Global Warming’, American Economic Review, Vol. 82 (March), pp. 1–14.

    Google Scholar 

  • SER (1993), Advies over de Invoering van Regulerende Energieheffingen (Advice on the Implementation of Regulating Energy Charges), The Hague.

    Google Scholar 

  • Smith, S. (1992), ‘Taxation and the Environment: A Survey’, Fiscal Studies, Vol. 13, Nr. 4, pp. 21–57.

    Article  Google Scholar 

  • Smith, S. and H.R.J. Vollebergh (1993), ‘The European Carbon Excise Proposal: A Green Tax Takes Shape’, EC Tax Review, Nr. 4, pp. 207–221.

    Google Scholar 

  • Tietenberg, T.H. (1985), Emissions Trading: An Exercise in Reforming Pollution Policy, Resources for the Future, Washington, DC.

    Google Scholar 

  • Tietenberg, T.H. (1992a), ‘Relevant Experience with Tradeable Entitlements’. In: UNCTAD, Combatting Global Warming, Study on a Global System of Tradeable Carbon Emission Entitlements, United Nations, New York.

    Google Scholar 

  • Tietenberg, T.H. (1992b), ‘Implementation Issues: a General Survey’. In: UNCTAD, Combatting Global Warming, Study on a Global System of Tradeable Carbon Emission Entitlements, United Nations, New York.

    Google Scholar 

  • Vollebergh, H.R.J. (1994a), Environmental Taxes and Transaction Costs, Tinbergen Institute Discussion Paper 94–96, Erasmus University, Rotterdam.

    Google Scholar 

  • Vollebergh, H.R.J. (1994b), ‘Transaction Costs and European Carbon Tax Design’. In: M. Faure, J. Vervaele, and A. Weale, Environmental Standards in the European Union in an Interdisciplinary Framework, MAKLU, Antwerpen, pp. 135–154.

    Google Scholar 

  • WRR (1992), ‘Milieubeieid, Strategie, Instrumenten en Haalbaarheid’ (Environmental Policy, Strategy, Instruments and Acceptability), SDU Publishers, The Hague.

    Google Scholar 

  • Zodrow, G.R. (1992), ‘Grandfather Rules and the Theory of Optimal Tax Reform’, Journal of Public Economics, Vol. 49, pp. 163–190.

    Article  Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 1995 Springer Science+Business Media Dordrecht

About this chapter

Cite this chapter

Koutstaal, P.R., Vollebergh, H.R.J., de Vries, J.L. (1995). Hybrid Economic Instruments for European Carbon Policy. In: Dietz, F.J., Vollebergh, H.R.J., de Vries, J.L. (eds) Environment, Incentives and the Common Market. Environment & Policy, vol 4. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-0113-4_3

Download citation

  • DOI: https://doi.org/10.1007/978-94-011-0113-4_3

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-010-4054-9

  • Online ISBN: 978-94-011-0113-4

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics