Carbon Taxes Boost Savings, Reduce Emissions Without Costly Administration
The article discusses how different types of taxes can be used to reduce carbon emissions while keeping administrative costs low. It suggests that using input taxes instead of emission taxes may be more effective in certain situations. The study shows that in some European countries, existing energy taxes can be used to reduce CO2 emissions without adding extra administrative burdens. By broadening the carbon tax base and removing exemptions for energy production, incentives for reducing carbon emissions can be increased without significant additional costs.