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carbon tax
(redirected from Optimal carbon tax)

   Also found in: Medical, Encyclopedia, Wikipedia 0.01 sec.
carbon tax
n
(Life Sciences & Allied Applications / Environmental Science) a tax on the emissions caused by the burning of coal, gas, and oil, aimed at reducing the production of greenhouse gases


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Weaknesses in the DICE Model's Recommended Carbon Tax Profile Nordhaus's method for calculating the optimal carbon tax (as a function of time) is straightforward.
Perhaps the optimal carbon tax for the world would be $70 per ton, but the United States would do better with a worldwide carbon tax of $30 per ton, or $20 per ton, or even $10 per ton.
Nordhaus suggests the optimal carbon tax trajectory balancing costs and benefits would start with a tax of about $17 per ton of carbon, rising to $84 in 2050 and $270 in 2100.
 
 
 
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