The possible introduction of a carbon tax in Europe is an issue
which has attracted the attention of numerous economists and
policymakers. The problems under debate concern the effects of the
tax at different levels: what cost, in terms of GDP growth, will be
paid by each European country? Will the effects on income
distribution be larger than those on income level? Should the
carbon tax be coordinated among the European countries or would it
be better to impose a uniform tax rate on carbon emissions? Can
Europe introduce the tax unilaterally or should this be done
jointly, with the other industrialised countries? This book
provides answers to such questions. It analyses the effects of the
European carbon tax on both a domestic and at an international
level.
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