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Submitted by Anonymous on
The author states that "We looked at all countries that had some form of carbon or energy tax and found that their overall economic competitiveness, and even the competitiveness of energy intensive sectors, was not compromised because of the tax." But he then goes on to note that "This is because most countries that have some form of a carbon tax today actively protect their most competitive sectors from the impact of the tax, either by exempting them or giving them generous allowances." So is it surprising that a carbon tax has no impact on the competitiveness of an industry when it is not imposed on that industry? Or when it is accompanied by production subsidies (which is what free tradable emission allowances are in effect)? And can we on the basis of these findings reach any general conclusions about the impact of carbon taxes on competitiveness?