Carbon tax could slow emissions but hurt growth, subsidies a mixed bag
In this article, scientists developed a model to study how using non-renewable resources can lead to harmful CO2 emissions. They showed that using Carbon Capture and Storage (CCS) technology can help reduce these emissions and improve well-being. The researchers analyzed different economic policies to tackle this issue, such as carbon taxes and subsidies for CCS activities. They found that while a carbon tax can reduce emissions and promote long-term growth, subsidies for CCS might lead to increased resource extraction and short-term emissions, creating a green paradox. Overall, the tax may have a positive impact on the economy and environment in the long run, unlike the subsidies which could slow down growth.