Learning and stock effects in environmental regulation: The case of greenhouse gas emissions

Journal Article · Mon Jul 01 00:00:00 EDT 1996 · Journal of Environmental Economics and Management

DOI:https://doi.org/10.1006/jeem.1996.0028· OSTI ID:458993

Kolstad, C D ^[1]

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1. Univ. of California, Santa Barbara, CA (United States)

This paper concerns the optimal regulation of greenhouse gases that lead to global climate change. In particular, we focus on uncertainty and learning (which, over time, resolves uncertainty). We present an empirical stochastic model of climate-economy interactions and present results on the tension between postponing control until more is known vs acting now before irreversible climate change takes place. Uncertainty in our model is in the damage caused by global warming. The results suggest that a temporary carbon tax may dominate a permanent one because a temporary tax may induce increased flexibility. 52 refs., 4 figs., 1 tab.

• DOE Contract Number: FG03-94ER61944
• OSTI ID: 458993
• Journal Information: Journal of Environmental Economics and Management, Journal Name: Journal of Environmental Economics and Management Journal Issue: 1 Vol. 31; ISSN JEEMDI; ISSN 0095-0696
• Country of Publication: United States
• Language: English

Related Subjects

01 COAL, LIGNITE, AND PEAT
02 PETROLEUM
20 FOSSIL-FUELED POWER PLANTS
29 ENERGY PLANNING, POLICY, AND ECONOMY
54 ENVIRONMENTAL SCIENCES
99 GENERAL AND MISCELLANEOUS
CARBON
CLIMATIC CHANGE
COMBUSTION PRODUCTS
ENVIRONMENTAL POLICY
FOSSIL FUELS
GREENHOUSE GASES
MATHEMATICAL MODELS
POLLUTION REGULATIONS