Commentary | Published:

Carbon tax needs thresholds to reach its full potential

Nature Climate Change volume 3, pages 10081011 (2013) | Download Citation

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.

Author information

Affiliations

  1. Fenner School of Environment and Society, Australian National University, Canberra, Australian Capital Territory 0200, Australia

    • John C. V. Pezzey
  2. Crawford School of Public Policy, Australian National University, Canberra, Australian Capital Territory 0200, Australia

    • Frank Jotzo
  3. Centre for European Economic Research, Mannheim 68161, Germany

    • Frank Jotzo

Authors

  1. Search for John C. V. Pezzey in:

  2. Search for Frank Jotzo in:

Corresponding author

Correspondence to John C. V. Pezzey.

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    Supplementary Information

    Free carbon design issues that apply symmetrically to a tax and to trading

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DOI

https://doi.org/10.1038/nclimate2054

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