The political opportunities for implementing a carbon tax high enough to induce large emission cuts will be better if at first the tax is charged on the difference between emissions and fixed thresholds, rather than on all emissions as is now practised.
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Acknowledgements
We thank F. Convery, M. Grubb, S. Hatfield-Dodds, A. Morris, T. Sterner and D. Victor for helpful comments, and C. Hilliker for technical assistance with the figures.
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Pezzey, J., Jotzo, F. Carbon tax needs thresholds to reach its full potential. Nature Clim Change 3, 1008–1011 (2013). https://doi.org/10.1038/nclimate2054
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DOI: https://doi.org/10.1038/nclimate2054
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