Climate Policy Design and Revenue Management in Resource-Rich Economies
RFF Academic Seminar
, Assistant Professor, Agricultural and Resource Economics
University of Maryland
This paper studies optimal climate policy design from the perspective of energy resource-rich developing economies. The model seeks to capture two unique challenges facing such countries. First, climate policy affects public finances both directly and through its impacts on energy resource rents. These fiscal interactions are welfare-relevant when governments raise revenues through distortionary taxes, and if pre-existing taxes fail to fully capture energy resource rents. Second, climate policy may ameliorate the (potentially negative) growth impacts of resource windfalls, again due to its impacts on resource rents as well as its direct effects. In order to characterize optimal climate policy in this setting, this paper thus formally incorporates (i) a dynamic Ramsey optimal taxation model with (ii) multiple sectors, (iii) energy resource extraction and supply dynamics, and (iv) a climate externality.
Thursday, May 21, 2014
12:00 - 1:30 p.m. EDT
A light lunch will be provided.
7th Floor Conference Room
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