Policy instruments for curbing CO2 emissions: The case of the Netherlands |
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Authors: | A. Lans Bovenberg |
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Affiliation: | (1) Center for Economic Research, Tilburg University, P.O. Box 90153, 5000 LE Tilburg, the Netherlands;(2) Research Centre for Economic Policy, Erasmus University Rotterdam, P.O. Box 1738, 3000 DR Rotterdam, the Netherlands |
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Abstract: | Taxes may seem to be the most attractive instrument for curbing the emissions of carbon dioxide. This paper, however, argues that environmental taxes involve a number of serious complications — especially in an open economy riddled with market imperfections like the Netherlands. Therefore, a wide-ranging policy mix is called for. As far as households and sheltered sectors are concerned, regulation can continue to play a major role. Within the context of unilateral policies aimed at exposed sectors, the combination of subsidies and voluntary agreements may be more cost effective than the tax instrument.This paper was prepared for a conference on Energy Taxation in Europe organized by the Stichting voor Economisch Onderzoek (SEO) and held on December 13, 1991 in Amsterdam, the Netherlands. The author would like to thank Sijbren Cnossen, Jarig van Sinderen and one anonymous referee for helpful comments on an earlier draft. |
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Keywords: | Energy conservation environmental taxation open economies second best international coordination |
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