Article ID: | iaor20117766 |
Volume: | 39 |
Issue: | 9 |
Start Page Number: | 5137 |
End Page Number: | 5146 |
Publication Date: | Sep 2011 |
Journal: | Energy Policy |
Authors: | Lin Boqiang, Li Xuehui |
Keywords: | energy |
As the most efficient market‐based mitigation instrument, carbon tax is highly recommended by economists and international organizations. Countries like Denmark, Finland, Sweden, Netherlands and Norway were the first adopters of carbon tax and as such, research on the impacts and problems of carbon tax implementation in these countries will provide great practical significance as well as caution for countries that are to levy the tax. Different from the existing studies that adopt the model simulation approaches, in this article, we comprehensively estimate the real mitigation effects of the five north European countries by employing the method of difference‐in‐difference (DID). The results indicate that carbon tax in Finland imposes a significant and negative impact on the growth of its per capita CO