Taxing Fossil Fuels under Speculative Storage

Taxing Fossil Fuels under Speculative Storage
This paper investigates the mechanisms through which environmental taxes on fossil fuelusage can affect the main macroeconomic variables in the short-run. We concentrate on aparticular mechanism: speculative storage. The existence of forward-looking speculators inthe model improves the effectiveness of tax policies in reducing fossil fuel usage.... READ MORE...

Publication date: December 2014
ISBN 9781475573688
$18.00

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