Global Carbon Tax

Armon Rezai, Frederick van der Ploeg

Publication: Popular science articles (i.e. magazines)Popular science article


The failure of markets to price carbon emissions appropriately leads to excessive fuel use and induces global warming. This column suggests a new, back-of-the-envelope rule for calculating the global carbon price. The authors find that fighting global warming requires a price of around $15 per ton of emitted CO2, or $0.13 per gallon of gasoline. The rule also highlights the importance of economic indicators, such as GDP, for climate policy.
Original languageGerman (Austria)
Specialist publicationVOX CEPR's Policy Portal
Publication statusPublished - 15 Jan 2015

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