Lemoine, Derek (2020): Incentivizing Negative Emissions Through Carbon Shares
Lemoine, Derek (2020): Incentivizing Negative Emissions Through Carbon Shares. In National Bureau of Economic Research. Available online at https://www.nber.org/papers/w27880.
"I show that commonly proposed emission taxes are not optimal for controlling climate change: they can achieve zero emissions but cannot induce negative emissions. The first-best policy charges firms period by period for leaving a stock of carbon in the atmosphere, not just for injecting carbon into the atmosphere."