By Clive Oxenden, Christina Latham-Koenig, Paul Seligson
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Additional resources for American English File Level 2 Teacher's Book
Pdf 50 Anil M Markandya were estimated at around 2 percent, which is a relatively small contribution. This is probably the result of significant tax reductions to energy intensive industries (50 percent of emissions are caused by energy intensive industries that pay only 20 percent off energy taxes). 8 percent reduction in CO2 emissions was attributed to the subsidies mentioned above. B. The impacts on employment were not reported, but are estimated to be positive and small (Mr. Larsen, private communication).
More importantly, none of the models was able to indicate the sensitivity of the results to changes in the ability to shift the tax burden onto capital. The theoretical analysis suggests that this is very important, and the investigation of this with numerical models should be a high priority for further research. We should also not forget that there is a tension between the employment and environmental benefits on the one hand and the distributional impacts on the other. As we showed, the factors that make the Green Tax more effective in the former areas are also the factors that could have disproportionate negative effects on the groups like pensioners and unemployed.
1 Carbon Taxes versus Permits The debate on price versus quantity instruments for tackling climate change has continued for decades. Although the introduction of a European emission trading scheme within the Kyoto framework could have represented a pragmatic resolution to this discussion, the need to engage the US and other large-emitters fast-growing countries, has led some economists to suggest a global carbon tax as a possible way around the impasse (see, for example, Stiglitz, 2006). One of the key issues here is the impact off uncertainty on the choice of instrument.