(7) Tax on domestic production of fossil fuels
Intuition: reducing domestic production increases net imports, thereby increasing the international price of fossil fuels and thereby decreasing foreign consumption
10/N
Intuition: reducing domestic production increases net imports, thereby increasing the international price of fossil fuels and thereby decreasing foreign consumption
10/N
Comments
With no aversion to leakage, only a uniform carbon tax is needed
11/N
End of 🧵
12/N